Havyard Times 2013

havyard times a M A G A z I N e f r o m t h e HAV YAR D G R o u p j u n e 2 0 1 3

06 Research for better vessels and a better environment 10 Swimming against the stream 38 From tiny attic to Havyard house

havyard times Havyard Times is the external magazine for the Havyard Group and its subsidiaries. Through this magazine we hope to give our customers an impression of our local, regional and worldwide activities. Our new vision is "Improving life at sea". We hope that this magazine can help to improve your understanding of our vision and your knowledge of Havyard.

chief editor:

gunnar larsen

text:

May Britt HaukĂĽs Per-Jan Brekke

translation:

Eggesbø hagen

graphic design:

cann as

photo:

Trude Brun Wilhelmsen, yann aker, Marius Beck dahle, Gunnar Larsen, Per-Jan Brekke

print:

2

TINDE AS

06

10

04

Leader by President of the Havyard Group

06

Research for better vessels and a better environment

10

Swimming against the stream

18

iSO certifcate guarantees quality

22

Market leader joins the Havyard family

28

Life on board a Havyard 855 IMR vessel

34

Against all odds

38

From tiny attic to Havyard house

44

New contracts

48

Delivered newbuilds

38

3

leader

Improving life at sea IMPLEMENTING A NEW VISION

MMC

Following a successful process involving many people, last

At the end of 2012 we acquired 70% of shares in MMC

year we introduced our new vision Improving life at sea

AS. MMC AS is a very exciting company and a leading supplier of products and services within refrigeration and

After the introduction of our vision we see that we have

handling of fish, with plenty of highly skilled and motivated

achieved the goal of motivating Havyard employees to

employees.

contribute towards improving everyday life of all of those involved in operations of vessels by Havyard design, or

The background for this acquisition is that Havyard has

vessels that have Havyard equipment onboard, whether

decided to increase efforts within the fishing segment.

these are crew, charterers, onshore employees or others

This focus is based on the fact that the market is large and

that benefit from our competence and skills.

important, and not least founded on our geographical

A good example of this is during discussions where

location being in Fosnavaag, one of Norway`s largest

decisions are being made, the question is posed; ÂŤwill

fishing municipalities. Efforts have already resulted in

this be according to our visionÂť? With this constantly in the

contracts for delivery of a wellboat for Fosnavaag Shipping

back of our minds we will become even better at making

and even more recently a purse seiner for Smaragd AS,

decisions that will be good for our customers.

both shipping companies located in Fosnavaag.

HAVYARD BUSINESS MODEL

In connection with the wellboat contract, MMC became one

We focus on five success factors in order to safeguard

of our largest and therefore most important subcontractors.

satisfied customers and our own competitiveness:

Based on Havyard`s strategy of controlling the critical

1. Design

parts towards delivery of a complete vessel, and not least

2. Technology

based on the enthusiasm and competence we experienced

3. Quality

amongst

4. Cost

acquisition soon emerged.

5.

MMC`s

employees,

discussions

regarding

Delivery Time

The aim is to deliver products and services of the best

Joining MMC`s many good products, market position and

quality at a competitive price on time, where the products

competence and enthusiasm of employees with Havyard`s

are of great and functional design with technology and

process and value chain mentality, I am convinced this

complexity in agreement with our customers` expectations.

will prove to be a successful decision that our customers

The most important factor of these five is QUALITY; what is

will benefit from. With Havyard`s mindset of customer

the value of a poor quality product?

focus we will ensure they receive even better products at

4

LEADER HAVYARD TIMES GEIR JOHAN BAKKE

"You are now reading the 8th edition of Havyard Times and I hope that you will find it interesting. The purpose

of this magazine is to communicate the current status and development of Havyard to our customers and stakeholders"

Geir Johan Bakke

an even more competitive rate, whether they choose a

LONG-TERM PERSPECTIVE IS IMPORTANT

complete package from Havyard including MMC products,

The will to change is crucial if we are going to succeed with

or whether they only choose to purchase MMC products as

our ambition of doing what we are doing today forever,

they select another design and shipyard outside of Havyard.

and the ambition that our children will continue doing the

One short-term challenge for MMC will be that Havyard`s

same. Simultaneously we say that we are going to construct

competitors in terms of, say, design and shipbuilding may

ships in Norway forever. This is an important and motivating

choose products from MMC`s competitors. Our opportunity

perspective for me and I feel during the working day that

here will essentially be that the customer decides, and we

this is also an important issue for all our employees.

know they will appreciate that MMC in the future will deliver even better products at a competitive rate.

With these words I wish all of our employees, stakeholders, customers and suppliers good luck, and I am looking

CHANGE IS RULE IN OUR INDUSTRY

forward to a successful cooperation where the aim is to

I often say that no one shows greater will and ability to

make each other good.

change than Havyard employees. Simply put, hardly any Havyard employee has the same business card today as he or she had 5 years ago; the company either merged, changed names or the employee changed jobs within the

GEIR JOHAN BAKKE President & CEO, Havyard Group AS

group as part of an individual development programme.

We live in an industry with what I would call «perfect» competition. There`s an overcapacity in all sections of the value chain with free competition worldwide. In such a context we must constantly find better solutions and ensure that our customers get a better product in accordance with our vision and business model. This is anchored within our organization and connected to our slogan for the Havyard culture, «we do before we have to». By this, we will take measures before we have to, e.g. if we see trends; an example of such a trend is the distinctively Norwegian wage development in relation to our competitors.

5

RESEARCH FOR BETTER VESSELS AND A BETTER ENVIRONMENT

Research for better vessels and a better environment text: may britt hau k책s photo: Ya nn Ak e r

06

RESEARCH FOR BETTER VESSELS AND A BETTER ENVIRONMENT

- It must be said that this is a bit of a conversation killer. When asked what I do for a living, the

inevitable answer of 'hydrodynamics' tends to stop a conversation in its tracks. But at Havyard Design & Solutions they know how to appreciate the passion of senior designer Kristian Steinsvik. He now has

the Sognefjord as a test laboratory to add to his list.

07

RESEARCH FOR BETTER VESSELS AND A BETTER ENVIRONMENT

His enthusiasm is infectious as the 32-year-old takes us

weather conditions. Together with Havila Shipping, who

through what we see on his computer screen. It is divided

contracted the boat, they decided to design a vessel

into six and we are watching the bows of six different

which conformed to meet the demands of Statoil.

ships simultaneously. They are all unique in size and

- We used the calculation methods we had developed,

shape but all meet the same wave. Interestingly the sea

which enabled us to calculate very early on what the

reacts differently to each hull formation. One plunges

fuel consumption would be, says Steinsvik.

deep into the bulging ocean, another creates a wave which sprays high over its bow, the third glides through

With the collection of wave statistics from The North

the wave with minimal spray. This is hydrodynamics:

Sea, they discovered that significant wave heights up to

the study of fluids in motion.

2 metres would cover over 50% of all waves the vessel

- Can you see the difference? Kristian Steinsvik smiles.

would experience. This would be a more relevant

This is just the beginning. All of these ships meet the

optimization criterion opposed to the 3.5 metres that

wave front on. What happens when the ship meets it

Statoil specified. They were therefore able to convince

at a slight or an even bigger angle? When it changes

Statoil to lower their demand, almost by half, when it

speed? When the waves are higher or indeed lower?

came to Hs.

When the wind changes speed or direction?

- We were of the opinion that the most sensible thing

- Not to mention the length of the wave, this is just as

to do was to construct a ship which had an optimal

important as the height of the wave, says Steinsvik.

fuel economy in the conditions it would face most of the time, explains Steinsvik. He is also of the opinion

Strict Demands

that it is impossible to design a ship which functions at

Statoil is a tough, but attractive employer. The oil

an optimal level in all conditions. There are hundreds

company advertised a tender of a five-year contract

of parameters to take into consideration, different

for a supply vessel where one of the demands listed

combinations

was that the vessel needed to have reduced energy

operations and cargo to name but a few.

consumption levels. Specifically in significant wave

- We cannot just focus on one thing either, we must look

height (Hs) of 3.5 metres, in the North Sea, and at

at the end result, he says. - If I use a prawn trawler as

typical operational speed.

an extreme example; if it uses 80 per cent of its time

- That`s interesting, comments Steinsvik, demands are

trawling and 20 per cent travelling to and from these

often connected to calm seas.

areas, it is most probably of higher importance how the

of

waves,

wind,

currents,

speed,

trawler functions at 2 knots than at 14 knots. Both are of Havyard Engineering & Solutions were already in

course important, but it is about prioritising the many

the process of developing a new data controlled

parameters correctly.

simulation method for testing ships in all types of

08

RESEARCH FOR BETTER VESSELS AND A BETTER ENVIRONMENT

Havila Charisma

controlled simulation programme. He works closely

Havila Shipping won the Statoil contract. Havila

with the research network in both Norway and The

Charisma was named in December 2012 and is

Netherlands, which will write and publish articles about

currently at work in The North Sea. The Havyard 833L

the work with FOU.

design vessel was constructed at the Leirvik shipyard for the company. Feedback has been extremely positive.

During the work on Havila Charisma there were several

The CEO of Havila Shipping, Njål Sævik, says the vessel

developments. It enabled the company to develop and

is amongst the world's most environmentally friendly.

test out that the calculation models work even though

During a test trial the emissions of NOX were reduced by

the system is far from being finished. The aim is to

99.8 per cent. Statoil's specification is set at 90 per cent.

undertake all tests as a simulation first so that the model

Noise and vibration controls qualify the vessel for DNV`s

test in a tank is just verification.

Comfort V (2) class, whereas Statoil's specification was a class lower.

The Sognefjord

- We are told the vessel sails very nicely in the ocean

- We do not wish to have any surprises, neither positive

and fuel consumption is low, explains Steinsvik. But he

nor negative. Our aim is to have complete control, he

is not quite finished with Havila Charisma yet. Pending

says. Full scale tests are undertaken in calm waters.

is a full scale experiment, to take place under real

In partnership with MARIN they have placed a wave

conditions in The North Sea together with Maritime

buoy in the middle of the scenic Sognefjord. The boat

Research Institute Netherlands (MARIN), the Dutch

is also equipped with additional instruments to record

research institute they are working together with.

important data. The Norwegian Meteorological Institute provides the simulation of the environmental conditions

Research

so that they know exactly what conditions the vessel is

Steinsvik came to Havyard three years ago. His

being tested under. This provides valuable information

background is in research and technology for Sintef,

to include in the calculation models.

Marintek and Det Norske Veritas and initially he was a

- Test results from the last research project and our

little sceptical about moving to a smaller work place, but

latest concept, show that energy consumption can be

he and his family wanted to come home to the nature

influenced by 30 per cent at deep sea and in typical

and culture that are Sunnmøre. He does not regret it for

weather conditions, without even touching any part of

a second.

the machinery. And already the basis for comparison

- It doesn't matter who I ask in the office, I always learn

is good. It is fascinating work! I would like to strike a

something new! He laughs. He goes on to say that

blow for Hydrodynamics, enthuses an engaged Kristian

he is more of a contributor than a design developer.

Steinsvik.

Calculations and analyses will be done on a computer

09

Swimming against the stream

Swimming against the stream text: May Britt Hau k책s photo: T r u d e B r u n W il h e lms e n

10

Swimming against the stream

Since 2005 Global Offshore Services Ltd. in

Mumbai has ordered seven vessels for around NOK 2 billion from Havyard in Norway. Because it does pay off.

11

SwIMMING AGAINST THE STREAM

�As a 21-year-old Aditya Garware travelled to the USA to study at Lehigh University in Pennsylvania, for an

MBA degree (Master of Business and Administration).

The transition from his native country was massive."

Aditya Garware, Vice Chairman & Managing Director Global Offshore Services Ltd.

- I know you think it is a little strange that we have

to a ship that is going to be in operation for 20 to 25

vessels constructed in Norway whereas Norwegians

years. The most important thing is the quality, says a

have ships constructed in India. Vice Chairman &

determined Garware. Satisfied customers that are

Managing Director Aditya Garware (42) is smiling as he

confident about their tools being up to standard will

is talking about a particular European shipowner who

accept paying a higher rate. This provides security and

was wondering how this worked, because he actually

good relations to customers, shipyard, investors and

went the opposite way to save money. But Garware`s

banks. In addition, the vessels keep their value really well.

decision to build in Norway is still unwavering and till

He is very pleased with the price the company received

now six vessels have already been delivered from the

recently for one of their first Havyard constructed vessels.

Leirvik shipyard. Number seven will be launched in

- A vessel constructed in Norway is a good selling point,

August.

he confirms. His voice is pleasant and his English fluent with a charming accent. Smiling, relaxed and forth-

He agrees that it basically would have been cheaper to

coming he agrees to being interviewed for Havyard

construct vessels in the East. A lot cheaper, with potential

Times.

savings of up to 30 %. But he is thinking long-term. And his philosophy is as simple as it is absolute;

Difficult beginning

agreements and promises are to be kept. Always.

Aditya Garware is third generation of the family company. The beginning could hardly be more modest.

Time is money

His grandfather Padma Bhushan Dr. B. D. Garware,

He would like to illustrate his point with the story about a

arrived in the metropolis of Bombay seeking his fortune

shipowner that had a vessel constructed in India at the

with only 15 rupees in his pocket. Sleeping on the temple

same time as Global Offshore Services Ltd. had one of

stairs he started his search for a better future.

its vessels constructed at Havyard. Both were due to be delivered at the same time.

His son Ashok Garware, took over a company consisting

- I told him to call me one month after his ship was to be

of freight ships and 5 OSV’s. He is still Chairman of the

delivered. His ship was delayed by almost a year and

company now listed on the stock exchange. Their focus

ours was delivered on time!

is altered towards the offshore industry. The bulk ships are part of history. The family name of Garware has

For the customer it is crucial that the vessel is in operation

been removed from the company`s name altogether;

from the agreed date and that everything works as

changing its name to Global Offshore Services Ltd. in

planned from day one. Continous repairs and being

2011 as a consequence of their new activities. In 2004

moored to a dock are both expensive affairs.

they decided to go all out in an industry they had been

- Somewhat of a higher construction cost means nothing

testing since the turn of the new millennium.

12

SwIMMING AGAINST THE STREAM

13

SwIMMING AGAINST THE STREAM

- We didn`t have much to start off with but we decided

responsibilities. Aditya Garware believes he was a

to go for it, Aditya Garware says. A few million dollars

good child, but not particularly academically smart.

and four vessels was what they had as they bought a

He insists on us believing him when he says he was

secondhand UT-755 from Solstad Shipping. The day

completely amazed when he received the prize as

after taking delivery of this ship in December 2005, the

the most promising pupil of his class at the end of high

vessel started working on a 2-year contract for British

school. It was sports, especially cricket, badminton and

Gas in India. Through Offshore Shipbrokers, Aditya

tennis that were his main interests in childhood years,

Garware came to hear about Havyard for the first time.

not schoolwork. Then came the late teens and a natural shift in focus and his sports interest faded for some

Heavy investment

years. There`s a cheery glint in his eyes from behind

- I never, ever thought of the possibility of doing

his glasses. It is normally during the teenage years you

business in Norway! For someone who grew up in

discover interesting characteristics about the opposite

Mumbai in India and went for a university degree in

sex!

the USA, Norway was a distant and obscure part of

As a 21-year-old Aditya Garware travelled to the USA to

the world, and his impression was that it was far from

study at Lehigh University in Pennsylvania, for an MBA

being cosmopolitan like England and the USA. But he

degree (Master of Business and Administration). The

changed his views pretty much overnight thanks to his

transition from his native country was massive.

newfound relations with the people of Havyard.

- In India I was used to cramming just before an exam

- It was an astonishing experience. The first contract was

and afterwards I would forget most of it. That doesn`t

basically executed over a telephone conversation with

work in the US, he laughs. The preliminary year before

Geir Johan Bakke, Idar Fuglseth and our broker, Alan

starting the two-year MBA course was tough. He was

Gatland. And that`s how it all started; this is how we

told to reapply for his course; his place could not be

became “The Indians constructing vessels in Norway”,

guaranteed.

says Garware. In turn, they ordered PSV vessels of UT-

- I honestly thought I wouldn`t make it, but luckily they

755 L and UT-755 LN designs for 100 million dollars

accepted me once more. He tells us that it all went

and then Havyard 832’s for about 150 million dollars,

well. He had basically cracked the American code of

at Havyard. The first vessel was delivered in November

studying; three hours of homework for every hour at

2006. The business adventure that so far has led to

school!

seven vessels and major successes for both companies

- They became three great years in the USA, he assures,

had kicked off.

laughing again when telling us of his meeting with his economics teacher from the first year.

Inheritance, talent and hard work

- She wondered what on earth I was still doing at

Being born into a family company also means

University. When she heard I was about waiting to

14

SwIMMING AGAINST THE STREAM

get my MBA degree, she told the first-year students

case, is no longer an option; he believes the figure will

standing around us, who had just finished their finals,

be down to around 65 % to 75%.

that if I would get a degree, all of them had nothing to

- The stakes have been high but we have never gambled

worry about.

carelessly, he says. The financing has always been in place before ordering new vessels. And for most of them,

New experiences

long-term charters have been signed before the vessels

It is many years and many pounds since the young man

are delivered.

returned from his studies in the USA to straight away

- In any case we prefer long term charter contracts. This

starting to work on the floor in the family`s synthetic

has helped us a lot. Long-term investors and banks like

fibre unit. All traces from junk food are gone and the

this approach. It has created a trust and security knowing

passion for cricket is back, also as an active participant.

that loans would be repaid evenly through the cash flows

- We have our own cricket team within the company

of long term contracts.

and we take part in tournaments, he says. It strengthens camaraderie and provides exercise and plenty of joy. At

Financing and chemistry

weekends they sometimes play for hours on end. Over

Good terms and quality were major reasons why

the last few years Garware has also found time to take

Garware chose Havyard in 2005. But equally important

out some holidays, including trips to Singapore, London,

were the human relations.

Thailand and Mauritius along with good friends. During

- It has been a great experience working with Havyard

business travels around the globe he sometimes plots in

and that is why we keep coming back for more. There`s a

the odd day off and he is careful about getting enough

mutual respect and understanding. If there is a problem

sleep. That`s necessary to keep up the pace. Global

we work closely together in order to solve the issue. I like

Offshore Services Ltd. has today 12 vessels on contracts

the direct Norwegian approach, he says and smiles. To

in India, the North Sea, Brazil, Asia and Western Africa.

be true, the Norwegians he has met have mainly been

They have offices in Holland, Singapore and Brazil in

people working for Havyard and as a result his view

addition to the main office in Mumbai.

on Norwegians is coloured by that fact. He believes Norwegians are very cosmopolitan, internationally

And the fleet will continue to expand. Garware still has

oriented and practical. One of the best pieces of advice

strong faith in the future of the offshore industry, but

he has received from them is not to worry. A company

his trust in the financial sector has taken a plunge. He

aiming to remain in this type of industry for a hundred

reckons that Global Offshore will acquire another two

years is bound to meet fluctuations of the market. That`s

or three vessels in the next five years but each with a

guaranteed.

much lower level of debt compared to before. 80 %

- As a shipbuilder or a shipowner you simply don`t make

to 85% financing through loans, which used to be the

money all the time. I have been involved in this line of

15

SVIMMING AGAINST THE STREAM

The founder of Global Offshore Services Ltd. in Mumbai started his career sleeping on the temple stairs. Now his grandson orders vessels from Havyard in Norway. Because the two companies share the same vision: always to keep promises. business for 15 years and I will continue for another 20 to

may be perceived as criticism. Again he emphasizes

25 years. I need to think long-term and not worry about

that personally he appreciates the straightforward

fluctuations. When having several vessels on long-term

Norwegian manners and the habit of not beating about

contracts, it is OK to let one ship operate within the spot

the bush.

market at a lower rate for a period of time. As long as it

- But some people might be offended by it. In India

all adds up in the end.

in particular, people are not used to being spoken to

The plan is to remain in the market which has provided

to perhaps be a little more diplomatic when trying to

such success in only a few years.

do business in India. Patience also comes in handy as

- We will keep focusing on supply vessels and small

things don`t always go as quickly as desired.

in a direct manner, he says, and advises Norwegians

anchor handlers. Now we know this market and we have gained a good reputation. We have reached a level

Mountains and coconuts

we are comfortable with, he says, and adds that the

The latest vessel so far from Havyard to Global

company is now well-equipped with a fleet of modern

Offshore was named in a ceremony in Aberdeen, 18th

and custom designed vessels. They will continue to offer

March this year. Ben Nevis is the company`s second

to the market a reliable and young fleet of top quality.

ship of a Havyard 832 design owned by the company’s subsidiary based in The Netherlands and will operate

Cultural differences

in the North Sea. It is therefore named after the highest

Aditya Garware slightly hesitates when questioned

mountain in Scotland.

about what advice to give Norwegians who wish

- We have traditions for naming our PSV’s after high

to do business in India. Being both diplomatic and

mountains, Garware says. There`s also a tradition for

polite he is somewhat reluctant to say anything that

giving the ship a good Hindu send-off after the regular

16

SVIMMING AGAINST THE STREAM

naming ceremony with breaking a champagne bottle

- I like the fact that customers expect a lot from us. It

against the hull. This never happens on a Saturday.

forces me and my employees to keep up. We have a

- Friday is fine, Monday too. But for us, it is not

fantastic team in the company now, he says and smiles.

acceptable to have anything to do with things made out

Capable competitors are also important in order to

of metal on a Saturday, he explains.

continuously improve.

- Preferably it should also rain on the day of the naming

- It does challenge us. The competition is tough and it

ceremony, as it provides success and happiness.

is crucial not to let down your customers. That is also

Whatever weather, they say prayers for the vessel and

why we never give an inch in terms of our vision; always

the crew and hand out special sweets and crack open

keep agreements and deliver high quality.

a coconut.

- The ceremony could last for up to eight hours but we

He shares this vision with Havyard, a vital reason for

make it short in order not to bore the others too much,

their great cooperation. As a result six newbuilds have

he laughs.

been constructed and delivered from Norway to the Indian company, with one more due shortly. Potentially,

Good partners and good competitors

this number could increase. And maybe then there

The likeable director is very pleased with the latest

might just be time for hiking trips in the Norwegian

addition to their fleet.

mountains? Aditya Garware has an open invitation

- The vessel was delivered on time, is of high quality and

from both Geir Johan Bakke and Gunnar Larsen but has

will increase in value whenever the market is picking

so far managed to wriggle his way out of it. He has not

up once again, he says. He is happy being able to

exactly distinguished himself as a wilderness person;

deliver one hundred percent to increasingly demanding

cultured games is more his kind of style. But maybe

customers.

next time?

17

iso certifcate guarantees quality

ISO certificate guarantees quality text: May Britt hau k책s photo: M AR I U S b e c k d a h l e

18

iso certifcate guarantees quality

- Of course we are proud! Sigvar Giil, Quality

Assurance Manager at Havyard Ship Technology,

thinks he is entitled to say at least this much. He has been project manager for the work that has led to the ISO certificate. The shipyard is about the only one in Norway reaching this status.

19

iso certifcate guarantees quality

All employees are encouraged to come up with suggestions for improvements. It`s about constructing the vessel just once, doing it all correctly straight away.

- It`s about constructing the vessel just once, doing it

Strict demands

all correctly straight away, Giil explains. And equally

Det Norske Veritas (DNV) examine whether the

important: always focus on customers` requirements,

demands for achieving certification have been met or

listen to feedback and improve what is not working

not. They spent four days at the shipyard in November

optimally. The will to change is present throughout

last year and liked what they saw.

the entire construction process. Havyard has made

- We received great feedback, says a pleased Pettersen.

a system so flexible that they cope with adjustments

The shipyard has developed procedures and detailed

during construction when customers wish to adjust.

standards for the various work processes. Through their internal computer network these are always

ISO 9000 is a set of international standards for quality

available for everyone involved. And all employees

control. Possibly the most important one is ISO 9001.

are encouraged to come up with suggestions for

This one involves internal training, customer service,

improvements.

documentation control, internal revision and evaluation

employees this is a useful tool, not least for those who

of the management. The aim is strengthening the

are temporary workers.

quality of the value chain from start to finish, which

- We have gained a lot more structure to what we

leads to good working conditions for employees, fewer

are doing, says Pettersen. And customers also receive

errors and a better end product for the customer.

documentation for how work has been done.

- The point is to keep things in order, says Chief

- They get assurances about the fact that what we are

Operating Officer Kenneth Pettersen of Havyard Group.

saying and what we are doing are two things linked

For

both

new

and

experienced

together. We lose the certification if we don`t follow

Detailed process

up, he says, a scenario they in no way have plans of

Things are simply not done overnight. The work of

entering.

achieving ISO certification for the shipyard started

- This certification is a result of Havyard`s will and

years ago. The shipyard in Leirvik is the first one out

ability to adapt to an increasingly demanding industry.

since it is the locomotive of Havyard Group, but the rest

Gaining certification means we have carried out solid

of the group already benefits from this process. Major

work positioning ourselves to where we want to be;

efforts are being made towards obtaining certifications

amongst the best, Pettersen says. He adds that they

for all the businesses within Havyard. And it doesn`t stop

want to be ahead of developments and customers`

there. The target is to reach certifications according to

demands but that there is also a self-interest in this

the standards of ISO 9001 and ISO 14001 for the whole

type of work; making mistakes and redoing work are

group. The latter of the two standards is in regards to

both costly affairs.

the environment.

- Havyard`s vision is Improving Life at Sea. That means

20

iso certifcate guarantees quality

the customer is our focus and he or she shall experience

focus compared to before and feedback is followed-up.

improvement when cooperating with us. The core of our

Errors are documented and then corrected.

thinking is customer focus, process mentality on value-

- Work becomes more interesting when you understand

adding activities and continuous improvement.

what customers need, both internal and external ones.

To achieve this target we have developed a production

And this is just the beginning, Giil thinks, as the potential

control system which we call Havyard Production

for improvement is big. Customers` demands change

System, based on the Lean Construction philosophy. The

and the shipyard intends to follow.

entire process has raised our game and made us better,

- We can beat our chest and be proud. We construct the

he says.

best vessels in the world for the world`s best customers!

The stout man from Sogn finally does lay it on a little thick.

Enthusiasm and pride - It`s fun experiencing the enthusiasm and involvement amongst employees! Sigvar Giil describes himself as a stout man from Sogn and is careful not to lay it on too thick. But he admits it is pleasing that certification now is in the bag and that both employees and customers are positive.

- Things have become really good. We are not an industrial

company

manufacturing

assembly

EGIAN NORW ITATION ED ACCRSYS 002 M

line

products but many of the work processes are still the same from ship to ship. It is therefore important that we are doing the same things similarly, he says. It involves processes being systemized, simplified and explained. These are visualized in a computer system

008 Y 001/2 ISO IF9IED COMPAN

CERT

that communicates well, reducing the number of errors and injuries. The computer programme is something they have developed themselves.

Customers first - Customers are a lot more satisfied with the way we are currently working, which we have already noticed, Giil says. Customers` demands are now even more in

21

MARKET LEADER JOINS THE HAVYARD FAMILY

Market leader joins the Havyard family text: may britt hau k책s photo: Ya nn A K ER

I have never gone to work for the money but because

my job is so interesting. I love what I am doing!

Leif Gjelseth is the founder of MMC, today worldleading within equipment and automated systems for

the gentle treatment and refrigeration of fish. Havyard

Group has acquired 70 per cent of his life work. But he will still keep one hand firmly on the wheel.

22

MARKET LEADER JOINS THE HAVYARD FAMILY

23

MARKET LEADER JOINS THE HAVYARD FAMILY

MMC AS is today world-leading within equipment

the price. But Bakke said: - Forget the wellboat; we

and automated systems for the gentle treatment and

want to buy your company!

refrigeration of fish. Turnover has nearly doubled over

- That is one of very few times I have been totally

the last two years and is expected to be around NOK 350

speechless, Gjelseth laughs, although he points out that

million for 2013. Customers are the owners of advanced

it did not last for very long. One month later Havyard

fishing boats and wellboats, some of these constructed

had acquired 70 per cent of MMC, which both parties

at Havyard Ship Technology in Leirvik, Sogn. That is why

are very pleased with.

Havyard became interested in buying the company.

- I needed to consider the proposition for a few days and

Fishing- and wellboats are important focus areas for

whether I was willing to give up the majority of shares

the group. And like vessels for the offshore industry they

and control of the company, Gjelseth admits. The more

want to control the value chain from start to finish. For

he thought about it, the more convinced he was that

Leif Gjelseth, though, Havyard`s interest was like a bolt

joining Havyard would be the right decision. MMC is

from the blue.

successful and continues to grow. The company of 120 employees faced an increase in staff and restructuring.

Surprise meeting

By joining Havyard they would gain access to the

One day in the autumn of 2012, Gjelseth bumped into

competence and resources of the group. Including

Geir Johan Bakke at Gardermoen Airport in Oslo. By

access to work force, financing, purchasing, operation

chance both of them had time for a chat. Gjelseth

and business development. The company has already

thought that Bakke wanted to discuss the price of an

increased its engineering staff considerably, mainly

installation that MMC was going to deliver for the

due to Havyard. But the most important factor was still

wellboat Havyard had started constructing. Gjelseth

the philosophy:

was a bit abrupt: he wasn`t prepared to negotiate on

- Havyard is a success story I greatly respect. I have

24

MARKET LEADER JOINS THE HAVYARD FAMILY

gained insight into the way they operate. They have

- MMC will still remain an independent supplier, he

dedicated people and are focused on delivering good

emphasises. The business will deliver products to

quality products on time. These values are exactly what

everyone interested in buying, no matter where vessels

we are about, which is why we chose to enter into

are constructed. Havyard is to be treated like any other

negotiations with them, says Gjelseth, convinced that

customer. MMC though will develop as a consequence

MMC will make greater success based on Havyard`s

of the focus that the majority owner has on controlling

recipe.

the complete value chain of deliveries.

- I have been part of booms and declines and learnt

- This requires us to perform and provides customers

that it is smart making the strategic changes during

with security, Gjelseth believes.

booms. Together with Havyard we will be considerably better prepared when the next decline comes, he says.

Creative and handy Like so many other young men in Herøy, Leif Gjelseth

Still independent

started his professional career as a fisherman. But he

Leif Gjelseth still owns 21.5 per cent of the shares and

took an interest in machines as well and became an

feels equally at home and equally interested in the

engineer. After six years as chief, he wanted to move

company as he ever was.

on: next step was the Fisheries Technical College.

- It may just as well have been a hobby! He laughs

During the latter stage of his studies he worked part-

again, assuring us this is what he likes doing. He is going

time in Per Sævik`s offshore company in Fosnavaag,

to continue as long as his health allows him to and as

Sævik Supply Management. I became the “Technical

long as he is able to contribute. The 56-year-old insists

man”, he smiles.

he has never felt better; you can count on him for many years yet.

As a fisherman he had seen the need for sorting the

25

MARKET LEADER JOINS THE HAVYARD FAMILY

”People within the maritime environment in Herøy

know and trust each other. The road from idea to realisation is short. Leif Gjelseth had the product ideas

that would make life easier for fishermen on board fishing boats and improve the quality of the catch"

catch on board the boats. During his studies he teamed

moved into a closed down shipyard. He had little money

up with subcontractors and constructed a sorting

but plenty of belief in his products and abilities. He

machine prototype. In 1988 the first one was installed

visited the bank manager and put forward his plans.

aboard Artus.

He left with a bank loan of NOK 400.000 and the go-

Another problem for fishing boats was the general

ahead for the business. Tendos could offer both sorting

wear and tear of the purse net rings. Gjelseth made

machines and vacuum pumps for their customers. It

another prototype where the wire slid on a reel. Success

fitted perfectly with the strategy of becoming better

once again. He was sought after in the pulsating local

than the competitor MMC, who only produced vacuum

industry in Fosnavaag. For some time he was partner

pumps.

of a company where he sold purse net rings and sorting machines for fish and he contributed technical

Rapid growth

assistance to fishing boats. But Gjelseth wanted to

People within the maritime environment in Herøy know

work more within product development for the seafood

and trust each other. The road from idea to realisation

industry. In 1992 he established his own company

is short. Leif Gjelseth had the product ideas that would

Tendos.

make life easier for fishermen on board fishing boats and improve the quality of the catch. He hand drew

Tough competitor

sketches and the industry around him made the

He doesn`t seem to be a big talker. Not modest or of few

products. Two years later he was able to employ his first

words either. More down-to-earth and conscientious.

colleague.

And determined. In his office by the sea his desk is placed facing the windows stretching from floor to

Customers turned up; there was need for more

ceiling. Whenever he looks up from his screen he has

employees and more space. In 1998 Tendos moved as

a magnificent view of the ocean, where the vessels he

the first business company into their new office building

has spent his career solving problems for, sail to and

at Mjølstadneset, today an industrial centre where

fro. «Your problem, our challenge!» became the obvious

Havyard is also based. Per Sævik`s Havila teamed up

first slogan for his company. The major competitor was

as co-owners and purchased 34 per cent of the shares.

MMC. The company was the first in Norway, and later

Having more capital, everything was made easier and

world leading, in terms of vacuum pumps for the gentle

Leif Gjelseth was again able to sleep at night after years

transportation of fish.

of high risks. He was now responsible for 20 employees.

- It was quite a challenge starting to compete against such a company, Gjelseth reminisces, and becomes

Two years on and Tendos was part of a large merger

enthusiastic when talking about the beginning. He

where MMC and several other businesses with adjoining

26

MARKET LEADER JOINS THE HAVYARD FAMILY

In cooperation with several research institutes they are developing a sorting machine that will show weight and appearance of every single fish, 50 a second.

products were included. Their focal points were on

systems onshore. Especially regarding the reception

fish handling and refrigeration technology in the same

of pelagic fish. In cooperation with several research

company. In 2003 the businesses that today are MMC

institutes they are developing a sorting machine that

were created, and the following year the MMC name

will show weight and appearance of every single fish,

was used by all.

50 a second.

- With this machine reception plants can specify goods

Quality

far better than before, it will assist an industry currently

- We wanted to modernise fishing boats and take care

facing difficulties, Gjelseth explains. As for fish farming,

of the world`s best raw materials so that they could

MMC has started developing land-based waiting

deliver the world`s best quality, says Gjelseth. There

cages and closed reception systems for salmon. They

were years of booms and declines but today MMC is

have established a business in Peru and also have good

market leader. They have developed new and better

activity in Chile. There is plenty to keep them busy.

technology for the automated handling of fish, from

Today`s vision «Cool technology for superior seafood»

catching the fish to onshore delivery. Fish farming is

is the guiding star of MMC.

another important market segment. The equipment

- If customers` goods are of superior quality then MMC

today is so advanced that it even delouses the salmon

has also succeeded, says Gjelseth. He is absolutely clear

aboard the wellboats and gathers the lice in order to

that it is other people`s contributions that determine

measure how big a problem this is. All without giving

whether you achieve things. It is important to give your

the fish a single scratch. It is sucked on board into a

colleagues responsibility and a free rein.

fully automated and closed process. The refrigeration

- I have been really lucky having people with knowledge

system works like «air-conditioning» for the fish. At

and talent in the team. That`s why we have succeeded,

delivery it is pushed ashore with overpressure, still

he concludes. He wants to work with them for many

untouched by human hands. Automated washing- and

years to come.

flushing installations provide cleaning with minimum use of detergents.

- The system today pumps 400 tonnes of live fish an hour, completely free from damage to the fish.

The wellboat can be washed down in less than half an hour, using only nine litres of detergent, Gjelseth says proudly. He believes they are now amongst the elite when it comes to equipment for fishing boats and wellboats. The next challenge is the reception

27

Life on board a Havyard 855 IMR vessel

Life on board a Havyard 855 IMR vessel text: Per-Jan Brekke, photo: Tom gulbrandsen, Per-Jan Brekke

28

Life on board a Havyard 855 IMR vessel

It is nearly 100 metres long, worth around NOK

750 million and there is accommodation for a crew of 78. Havyard Times has been on board Havila

Subsea, checking out what life is really like on board a vessel of Havyard 855 IMR design.

29

Life on board a Havyard 855 IMR vessel

The IMR vessel has finished the work for Statoil, part

rigs. In this coverage we will move around - deck by

of the current contract with Subsea 7. The contract

deck - to find out more about life on board this vessel.

was extended earlier this year and Havila Subsea will continue working for Subsea 7 for more or less the

ON THE BRIDGE

remainder of the year.

We will start almost at the top. Right beneath the

Havila Subsea is designed and developed by Havyard

magnificent sky lobby which includes two TV lounges

Group and was constructed at Havyard Ship Technology

and conference room, we find Captain Kjetil Enoksen

in Leirvik, Sogn in 2011. Including all equipment on board

on the bridge. After more than a year`s battle with the

the total value of the vessel is around NOK 750 million.

waves of the North Sea, and with 30 years’ service as

The vessel is owned by Herøy-based shipping company

captain, Enoksen is very eager to talk about the sea

Havila Shipping and is a so-called IMR vessel operating

capabilities of the Havyard 855 design.

within inspections, maintenance and repairs of subsea

Enoksen started his maritime career as a 15-year-old. –

installations.

I have virtually grown up inside of a trawler and I have

The

has

worked as mate and captain on board fishing trawlers

accommodation for 78 people with 22 single and 28

for close to 20 years. After four to five years on board

double cabins. There are six offices, two conference

merchant vessels I started working for Havila Shipping

rooms, hospital, sky lobby, fitness room, offline room,

five years ago; initially as first mate on Havila Mercury

online room and helideck on board. There are satellite

and the following two years as captain of Havila Saturn,

TV and radio installed for the crew in all lounges and

says Enoksen. He took over the captaincy of Havila

cabins.

Subsea when it was brand new in June 2011. And the

Havyard Times joined Havila Subsea on its voyage in

experiences made from more than one year`s battle

the North Sea, on an assignment by the Troll- and Vigdis

against the waves in the North Sea are excellent.

30

Havyard

855

design

Havila

Subsea

Life on board a Havyard 855 IMR vessel

- It is a wonderful ship moving very steadily in the sea.

from Bergen, is the one responsible for the welfare of

Without a shadow of a doubt the best vessel I have ever

everyone on board. The 44-year-old has worked on

come across. In addition to being incredibly seaworthy,

several Havila ships before he last summer embarked

all the equipment has worked perfectly from day one.

on a job on this brand new Havyard designed vessel.

So somebody has done a good job with this ship,

- This is a great ship and the conditions for us and the

Enoksen smiles.

crew in the galley are also superb, explains Helgeland,

When Havyard Times came along there were 56 people

who is responsible for everyone taking in the correct

aboard the vessel. Besides his crew of 21, Enoksen is also

food and nutrition. Normally there are 65 people on

the supreme commander of the 34 Subsea 7 and Statoil

board at any time, and since most of them do shift work,

employees on the vessel.

Helgeland and his team need to serve up lots of meals

- Of course, it has been a major transition going from

every day.

captain on board a small trawler to taking over as

- We serve hot meals every six hours. So the galley is a

captain of this type of vessel. After some time doing

busy place, smiles the Chief Steward.

trawl fishing it took nearly a week to become “human”

They stock up on supplies twice a month. Great amounts

again after you had gone ashore, whereas now I only

of supplies are taken aboard the vessel as they prepare

need a day in Tromsø before I am back to normal, says

to head offshore.

the 49-year-old.

- Normally we need to take 100 kilos of wheat flour with us, 100 kilos of poultry, 250 litres of juice and 200 litres

GALLEY AND FITNESS ROOM

of milk for a fortnight, he informs, and adds that the

Going downstairs to the next deck, you`ll find the galley,

weather is the biggest challenge on board for those who

lounge and fitness room for the crew.

work with food.

And in the galley Chief Steward, Gunnar Helgeland

And there is no doubt that the galley crew is doing a great

31

Life on board a Havyard 855 IMR vessel

SECOND ENGINEER: – This is no doubt the best engine room I have ever worked in, says Second Engineer, Per Even Larsen, who has six big engines to keep track of. job. Nearly everyone we talk to says that meals are the

seabed, inspecting and repairing the Troll and Vigdis

highlight of the day. When looking at the selection and

rigs` subsea installations.

the dishes being served, it is easy to understand why.

A remote operated robot like this, a so-called ROV, is valued at around NOK 20 million.

- Yes, we do try to do things properly. Our motto is to

The ROVs can be fitted out with both coarse and fine

make as much of the food as possible from scratch,

claws. The smallest claw with a rotating “wrist” has such

and we always use good quality raw materials, says

fine motor skills that it can bring down relatively small

Helgeland.

plugs and screw them in at a depth of more than 200

The sociable Chief Steward is also the one in charge

metres.

of the weekly quiz and lottery. He is also a permanent

The people controlling these devices also need to be

fixture at card nights.

very “dexterous”. One person on board Havila Subsea is

- It is also important to have social activities on board,

someone as rare as a female ROV-trainee; her name is

not just work and food, smiles Helgeland.

Tina Solberg Pedersen. This young girl from the county

On the same deck there is a well-equipped fitness room

of Hordaland was on her first voyage when Havyard

for those who wish to shed some of the calorie intake, or

Times met her in the “PlayStation” room.

simply to keep fit while working at sea.

- It is an incredibly exciting but also a very demanding job. You can`t afford to make many mistakes as they

SUBSEA SECTION

will be very costly, smiles Tina, before steering NOK 20

If we move one step further down onto main deck you

million worth of ROV down into the depth of the North

will find the Subsea 7 and Statoil crews. Inside Subsea

Sea.

7`s “PlayStation room” there are loads of activities in terms of controlling two robots operating on the

32

Life on board a Havyard 855 IMR vessel

THE ENGINE ROOM

FACTS HAVILA SUBSEA

Right at the depth of the Havyard 855 designed vessel,

Havyard 855 IMR design:

Second Engineer Per Even Larsen, supervised by Chief

Length:

98 m

Marius Berge, has six engines of 2150 watts each to

Breadth:

19.8 m

keep track of. These engines total more than 17000

Dead weight:

4592 tonnes

horsepower.

Deck area:

600 m

Per Even Larsen has previously worked as a fisherman

Speed:

15.5 knots

and shipyard worker at Båtbygg in Vågsøy, before

Accommodation:

78 persons

embarking on a career in the offshore industry.

Offshore crane:

150 tonnes

- I have sailed for many other shipping companies, in places such as the Mexico Gulf. In 2010 I was employed

by Havila, says Per Even, who first worked in the engine room on the anchor handler Havila Jupiter, before moving on to Havila Subsea.

- It has been a great job so far. This is no doubt the best engine room I have ever worked in and it is well arranged and spacious. The environment aboard is also excellent, says the engineer who works a rota of four weeks on and four weeks off.

And as a father of five the engineer also has plenty to occupy himself with once he disembarks and goes home.

33

AGAINST ALL ODDS

Against all odds text: may britt hau k책s photo: G u nn a r L a r s e n

34

AGAINST ALL ODDS

On the 10th February 1992 a 14-year-old-boy wearing a pair of shorts arrived in a city he had

barely heard about: Copenhagen. Along with mum, dad and grandma he had escaped the war on the

Balkans. Today Nedim Jakupovic is manager of two companies of the Havyard Group; Havyard Electro Installation and Havyard Contracting.

- I love everything about my job! All of it is simply the best!

bags, they thought they were going to stay away for only

His smile is broad, he laughs generously, the handshake

a few days.

is firm and words are pouring out at a formidable pace.

In Norwegian with a Danish and Serbo-Croatian accent.

Escape

It is amazing how much can be said in the space of two

At night a friend of his father drove the small family across

minutes.

the mountains to Montenegro. Nedim`s big brother was

- I know I speak too fast but I`m trying to improve, he

at work in Sarajevo, the city that was shut off from the

laughs out loudly. The result of that particular effort is

world for a long time. He couldn`t manage to get out.

hardly noticeable but otherwise is Nedim Jakupovic the

Word got round to his father about this bus transporting

prime example of hard work equaling success.

Muslim refugees into Poland. They boarded the bus along with other people they knew. For a month they

War

lived and slept on the bus. Food was a little bit of bread

Jakupovic grew up in the small town Trebinje in Bosnia

that the driver bought for them. Constantly there were

Herzegovina, north of Dubrovnik in Croatia. It was a

guards demanding payment before allowing the bus to

happy childhood. His father was a skilful electrician,

continue.

known and respected in the region and the great hero to both his sons. Nedim loved going to work with his dad.

One day in February the bus journey ended quayside in

They were wealthy. At weekends the family went to

Gdynia and they had to choose between two different

Dubrovnik where the youngest lad got to practice his

ferries; Sweden or Denmark? Both countries were

favourite sports; water polo, swimming and boxing.

equally unfamiliar but his father learnt that a specific

At school in his hometown his classmates were Serbs,

permit was needed in order to stay in Sweden. They

Muslims and Croats. This was never an issue.

walked on board the ferry to Denmark.

They spoke the same language, they were one people.

That all suddenly changed when the war broke out.

A new life

- What did actually happen? Today it is incomprehensible,

The family was sent to a reception centre for asylum

says a thoughtful Jakupovic. Suddenly overnight, best

seekers in Fyn. For three years they were crammed into

friends stopped talking to each other. It was painful.

one room and shared a kitchen and a bathroom with other refugees. All this while they were anxious about

Acts of war also reached their little town. They slept in

Nedim`s big brother who was stuck in Sarajevo. Was he

the basement. Still they could hear the sounds of bombs

still alive? Rumour had it that he was still alive so they

and grenades. One day his father came home telling

sent money via an intermediary. They got no sign of life

them that they had to leave. Muslims had to get out of

in return.

the Serbian town. They packed precious little into their

35

AGAINST ALL ODDS

The team is everything, we sort things out together! Nedim Jakupovic (right) is leading HEI with 90 Polish and Norwegian employees. Kamil Kustusz is Regional Manager, Havyard Electro Installation Sp Z o. o.

Nedim spent his time training and learning Danish by

the point of delivery of a finished vessel. The group has

speaking to the caretaker. In 1995 they received residence

therefore got its own electrical competence business,

permits meaning they were now free to rent a small flat

Havyard Power & Systems AS, with branches in Leirvik

and start life afresh in their new country. His dad got a

and Aalesund. But within Havyard there was need for

job as an electrician, whereas Nedim was allowed to go

more. A decision was made to establish a subsidiary.

to school. He could speak some Danish but wasn`t able

Nedim Jakupovic had worked 12 years for Sencon and

to write the language. The following year he left 10th

other Danish companies in Norway. From being a newly

grade with top marks. That same year the war on the

qualified electrician he had become foreman and later

Balkans ended and his brother finally managed to get

on site manager for Norway.

out of Sarajevo and to make contact with his family once

Many assignments were at Havyard`s shipyard in Leirvik,

again. Strict immigration laws, however, stopped him

Sogn. He was well familiar with the company and many

from joining his family in Denmark. Instead he moved to

of its employees.

Australia where he has successfully developed a major

- There is so much going on at Havyard! There are great

company with numerous employees.

people here and the working environment is so good, he says. He applied for a position in the company and

New country

in November 2011 he was offered the job of developing

Nedim Jakupovic decided to become an electrician,

Havyard Electro Installation (HEI).

like his dad. In 2000 he completed his course and was keen on starting a professional career. Proud parents

Rapid growth

witnessed their son being rewarded with a diploma for

Today HEI has 90 Polish and Norwegian employees. In

best student of his class, having gained top marks in all

January 2013 Jakupovic was also given the responsibility

subjects. Getting a job in Denmark was really difficult

of developing a subsidiary of Havyard Ship Technology

however, especially for someone with a foreign name

in Leirvik, the piping company Havyard Contracting.

like his. He didn`t hesitate for one second when he

There are currently 41 employees working for this

received an unexpected phone call requesting him to

business branch. Both companies perform production

travel to Norway to start work at Myklebust shipyard on

services for Havyard and also for external customers.

the western coastline. The Danish electrical company

- I never say no to a challenge, Jakupovic laughs. Both

of Sencon had many contracts at various shipyards in

of the companies that he manages are registered in

Norway and they needed more people.

Poland with branch offices in Norway. They respectively deliver electrical installations and piping installations

Different job

adapted to each individual vessel, right up to the point

Havyard Group wants to control all segments within

where complete installation on board has been made.

their value chain from initial contact with a customer to

They deliver services with a set rate for the job, also for

36

AGAINST ALL ODDS

customers outside of Havyard. From having founded Havyard Electro Installation one and a half years ago, turnover has increased from NOK 0 to 45 million a year. In the recently established Havyard Contracting, estimated turnover for 2013 is NOK 20 million.

- Things have moved very quickly, Jakupovic admits.

Besides a full-time job he has completed technical college and management training; net based, part-time and during evenings. In addition, he has set up his own family. He speaks Polish, Danish, Norwegian, English and Serbo-Croatian and manages employees from several nations.

- We have been good at becoming efficient and competitive. We sort things out together, he says, and emphasizes that you can`t make things work on your own. The team is everything; everyone is equally important and everyone will be treated respectfully. He praises Havyard for the vision that everyone who is able and wants to can succeed in the company: - It doesn`t matter where people come from, which is exactly what I have personally experienced. Never be afraid of saying where you come from. Be proud of your culture but respect others and listen to them. If you do, you can achieve great things, says Nedim Jakupovic.

37

FROM TINY ATTIC TO HAVYARD HOUSE

From tiny attic to Havyard House text: may britt hau k책s photo: YANN AKER

38

FROM TINY ATTIC TO HAVYARD HOUSE

The Havyard logo adorns the front of a characteristic building close to the quay in Fosnavaag town centre.

This is Havyard House, the main offices of Havyard Design & Solutions AS (HDS), where they develop

the qualities and appearances of future offshore- and fishing vessels together with colleagues in Stavanger, Poland and Croatia. And customers, of course.

39

FROM TINY ATTIC TO HAVYARD HOUSE

Being an international success also means a lot of travelling. And working and sleeping whenever possible.

The garage on the ground floor has been converted

in all sections are focused on interacting for the sake of

into more office space. 45 people, mostly men but also

improving processes and procedures. No matter how

some women, work at Havyard House. There is room

good we are, the aim will always be to get even better,

for even more employees but there is a lack of skilful

he smiles quite pleased.

engineers in Norway. Instead, the additional offices

The HDS staff designs offshore vessels and fishing

are frequently used by visitors who normally work at

boats. They deliver complete working drawings for

the other branches. HDS is established with around 20

hull, steel, piping, electro, ventilation; you name it:

employees in each of the Stavanger, Sopot (Poland)

everything in terms of drawings and documentation

and Rijeka (Croatia) offices.

needed for constructing a vessel. Customers are not

- We do not employ people at any cost but we never

only from Havyard Group companies.

say no to the right person with the right competence,

- HDS is an international success. When travelling,

confirms Executive Vice President Stig Magne Espeseth

people in the business know who we are, they know

of Havyard Design & Solutions AS. Skilful engineering

Havyard, says a proud Espeseth. The company has

experts are essential in order to keep hold of the

delivered ship designs to shipowners and shipyards

company`s current position. In the space of only a

in India, China, Singapore, Spain, Iceland, the Faroe

few years they have gone from four to more than 100

Islands, Nigeria and of course Norway, both to smaller

employees.

and major customers. Turnover is increased by the

- There have been some growing pains, admits

hundreds in the space of few years.

Espeseth. He says there has been quite a lot of work putting the organization into place, and there is still

Good offer

room for improvement.

During Easter 2005, Stig Magne Espeseth was cleaning

- But things are working well. Managers and employees

out his garage at home. All of a sudden the phone rang.

40

Fosnavåg FROM– TINY Norges ATTIC fremste TO HAVYARD næringsby HOUSE

The Havyard logo adorns the front of a characteristic building close to the quay in Fosnavaag town centre.

This is Havyard House, the main offices of Havyard Design & Solutions AS (HDS), where they develop

the qualities and appearances of future offshore- and fishing vessels together with colleagues in Stavanger, Poland and Croatia. And customers, of course.

On the other end was CEO Geir Johan Bakke of Havyard.

- We also realised there were opportunities opening

He wanted to set up a meeting. Straight away.

up if we were to become part of Havyard, Espeseth

- I got a feeling what this was all about, Espeseth

adds. There were several stages of negotiations, but

recollects with a smile. There was no more time for

after two weeks everything was done. Leine Maritime

cleaning and tidying that day. He acted straight away

was history and Havyard Maritime was established.

and got hold of Design Manager Arve Leine, who still

Recently the company changed its name to Havyard

hadn`t gone on holiday. The same day four men sat

Design & Solutions (HDS).

down at the table in a tiny attic office, where at the time Leine Maritime was based. Bakke arrived together with

From several small to one major

Financial Director Idar Fuglseth. They wanted to buy the

The Hayvard logo adorns the front of an office building

small design company with only four employees.

in Sopot, the city between Gdansk and Gdynia in Poland. Inside they are waiting for the ship models and

Quick decision

photos of Havyard designs to arrive that will further

- We weren`t sure, says Espeseth as he receives a

decorate the reception area. For both employees and

consenting nod from Design Manager Leine. The two

visitors there will be no doubt that they are part of the

have worked together since 1996, when Leine was

Havyard Group.

employed by his uncle Svein Leine`s company. Espeseth

Dariusz Frankowski and Robert Olesz had previously

had already worked there for five years.

worked for the ship design company Steelcad in

- We had been through a rough professional patch of

Stavanger, managed by Erik Kirkemo. 60-70 per cent

lay-offs. We were 12 people working there at its peak,

of their assignments came from Havyard. In 2006 they

now we were down to four. But we did have a really

founded their own business, Naven, in their homeland

good project going, Leine explains.

Poland, with Kirkemo as co-owner. Most of the work

4111

FROM TINY ATTIC TO HAVYARD HOUSE

�- In an engineering business the employees are extremely

important. They are literally the resources of the future.

We are in a healthy position right now but you don`t get anything for free. Hard work is the only thing that matters, it is the only thing that works, he says."

Arve Leine, Design Manager, Havyard Design & Solutions

came from Steelcad, the HDS subcontractor. They made

engineers are teamed together at the start of new

classification drawings and machining arrangements

projects.

for smaller machinery, 3D pipe drawings, sectional

Poland has proud shipbuilding traditions and a very solid

drawings, steel outfitting and accommodation, all

educational system. But the industry is in depression

fundamental parts during the construction of vessels.

with extremely few shipyards delivering new vessels.

HDS has therefore over the last four years acquired 70

The ones left are mostly working on hulls and repairs.

per cent ownership in Steelcad, Naven, and Vertex CAD

Many experienced engineers and ship designers have

in Croatia, in which Steelcad was also a co-owner.

therefore travelled abroad to find work. Frankowski and Olesz are happy to be able to offer some of these

The latter, led by Managing Director Dinko Cetkovic, is

an interesting job at home. Both are family men and

about to move in to new and modern offices in Rijeka.

interested in Polish nature and culture. They understand

Like their colleagues in Poland, they are pleased with no

the value of everyday life with the family, of being

longer just being subcontractors, but full members of the

present during their children`s upbringing.

Havyard Group. The rapid development of the company is inspiring and motivating. The logo will adorn the front

Heritage and responsibility

of this building in Rijeka as well, now the three companies

- Boats are what we know around here, says Stig Magne

are all named Havyard Design & Solutions.

Espeseth. – Either by designing boats, constructing them or working on board one of them. Quite early

Bonus

on he realised he had no future as a fisherman. He

- It is a great advantage for us to be part of Havyard,

was around 8-10 years old when they had two cousins

says General Manager Dariusz Frankowski. They feel

visiting. His family took them along on a ferry ride to the

more secure, there are longer spells of work on the

neighbouring island of Runde. He became seasick, a

horizon, and the company has grown from seven to 20

humiliating experience. All the others felt just as healthy,

employees. And they have gained extra competence,

even the two girls.

especially in terms of the initial phase of developing a

- This was really embarrassing and I understood I

ship design.

needed to remain onshore, he comments dryly. Today

- We no longer purely make workshop drawings,

he is responsible for 100 employees in three countries.

confirms Technical Director, Robert Olesz. They are

- Right at the start we were wondering what on earth

both frequently at the main offices in Fosnavaag and

we had done, says Arve Leine, about the transition of

in the Stavanger branch and they also often receive

being incorporated into Havyard. From being four men

visits by Norwegian colleagues. Knowing each other

working together rather isolated in an attic, all of a

well strengthens solidarity and cooperation. That is

sudden they had contracts for 25 vessels to deal with.

particularly important when groups of designers and

It was hard, it was hectic, and they encountered high

42

Design Manager Arve Leine has experienced a remarkable journey: from being four designers in a small attic office he now has colleagues in several countries. The future looks bright. expectations. Espeseth nods, but adds they have all made great strides: - It has truly been a fantastic journey. I haven`t regretted it a single day! He emphasizes that much of the competence they hold today, stems from the days of Leine Maritime, when they were few and given great responsibilities by Svein Leine who founded the company in the 1980s.

- He was a great master, they both agree. And much of his philosophy they have brought along into Havyard House; if people are to raise their game, then they need to be given responsibilities. You are allowed to fail once.

You will also be forgiven the second time. But if you fail the third time, then you are in trouble!

- It is when people are given a chance that their qualities will shine through, says Espeseth.

The future The work of organizing, distributing duties and defining roles for the various divisions within HDS is accomplished. It has been a demanding process but the will amongst employees to understand necessary restructuring has been immense. The ambition is to improve everyone`s working day and to give customers a better product.

- The future is promising and we are optimistic. But no one is better than what we make each other, says Espeseth. Leine adds: - In an engineering business the employees are extremely important. They are literally the resources of the future. We are in a healthy position right now but you don`t get anything for free. Hard work is the only thing that matters, it is the only thing that works, he says.

43

NEW CONTRACTS

HAVYARD 832 Four Havyard designs heading to offshore giant

H AVYA R D 8 3 2 Length:

79.00 m

Breadth:

17.60 m

Deadweight:

4000 tonnes

Deck area: Accommodation:

800 m2 25 persons

Illustration: Gunnar flusund

China Oilfield Services Limited (COSL) has chosen the Havyard 832 design for renewal of their supply vessel fleet, and has ordered Havyard designs for construction of four vessels.

The corporation, listed on the Hong Kong stock exchange, has the largest fleet of oil rigs and offshore vessels in China.

Mao Liling, General Manager of Havyard China in Shanghai, is delighted with COSL choosing Havyard.

- It really is a great honor for Havyard to be chosen as a supplier of ship designs to COSL`s 6000 HP fleet of supply vessels, and we are confident that the Havyard 832 design will meet their expectations. COSL is the leading supplier of services to the Chinese offshore oil industry and winning this design order for their fleet renewal program, is a prestigious achievement, says Mao Liling.

HAVYARD 832 Sinopec selects Havyard-design again

H AVYA R D 8 3 2 Length:

80.60 m

Breadth:

17.60 m

Deadweight: Deck area: Accommodation:

3900 tonnes 815 m2 26 persons

Illustration: Gunnar flusund

Havyard Group shall deliver a design package for building of a Havyard 832 Platform Supply Vessel (PSV) at the Chinese shipyard Fujien Mawei Shipbuilding. This is the second time in a row that Sinopec selects a Havyard design when building new ships. Their latest newbuilding was a Havyard 843 AHTS delivered in November last year.

- When Sinopec again chooses a Havyard design we see this as a recognition of Havyard as a brand in China and that Sinopec is satisfied with the Havyard 843 they took delivery of last year says Gunnar Larsen, Senior Vice President at Havyard Group.

The shipowner; Sinopec, is the second largest oil company in China and the largest producer and supplier of refined oil products. The shipowning branch of the company is supporting its E&P activities in Chinese waters. Sinopec also charter OSV services from other shipowners for supporting its activity.

44

NEW CONTRACTS

HAVYARD 857 Marine Platforms Limited order subsea vessel from Havyard H AVYA R D 8 5 7 Length:

113.00 m

Breadth:

22.00 m

Speed:

15 knots

Main deck area:

1200 m2

Offshore crane:

250 tonnes

Accommodation: Deadweight:

120 persons 5000 tonnes

Illustration: Gunnar flusund

The vessel, a Havyard 857 IMR Subsea Vessel, is scheduled to be delivered from Havyard Group’s shipyard in Norway in August 2014.

Marine Platforms Limited (MPL) is a new customer for Havyard and operates in a region where few Havyard vessels have operated until now. MPL is an indigenous Nigerian Company offering diverse Services to the Oil and Gas industry in West Africa. Headquartered in Lagos Nigeria, their Operations base is situated at Federal Ocean Terminal (FOT), Onne Oil and Gas Free Zone near Port Harcourt on the south coast of Nigeria and they have a Technical Support Office in Aberdeen, Scotland. They provide Completions and Sub-Sea Solutions in Deepwater.

- Quality, safety records, design flexibility, on-time delivery, cost efficiency and post yard support are sterling qualities MPL found in Havyard, says Taofik Adegbite, Owner and Chief Executive of MPL. Since 2005 Havyard has developed a series of successful Subsea Vessel designs, including the Havyard 858 DSV “Seven Havila” which received the OSJ Support Vessel of the Year award in 2011.

HAVYARD 535 Havyard to construct New Smaragd

H AVYA R D 5 3 5 Length: Breadth: Cargo hold:

74 m 15.8 m 2100 m3

Illustration: Gunnar flusund

Havyard Group has signed a contract with the shipping company Smaragd regarding the construction of their new purse seiner / trawler.

New Smaragd is going to be designed by Havyard`s design company in Fosnavåg, constructed at Havyard`s shipyard in Leirvik in Sogn, Norway and is due to be delivered to the Fosnavåg based shipping company in April 2015.

- This will be our sixth boat and the third newbuild. We started the discussions and drew the first few lines together with Havyard as far back as 2009, says Petter Geir Smådal, the captain and one of the Smaragd owners.

- Planning a new boat is an exciting process while also being a big decision to make for a shipping company like ours. We put great emphasis on getting a modern vessel and creating a good and secure working place for our crew. Together with Havyard we have developed what we obviously feel is our best fishing boat so far, says Smådal.

45

NEW CONTRACTS

HAVYARD 832 L Iceland-Norway alliance

H AVYA R D 8 3 2 Length:

88.50 m

Breadth:

17.60 m

Deadweight: Deck area: Accommodation:

3700 tonnes 850 m2 30 persons

Illustration: Gunnar flusund

FAFNIR OFFSHORE AND REMØY MANAGEMENT have secured a six year (180 days a year) back-to-back time charter contract with the Governor on Svalbard for FAFNIR’s newly commissioned platform supply vessel. The ship will service the Arctic island Spitsbergen 180 days a year, first season beginning spring 2014.

The ship is a Havyard 832L WE design which will be built at Havyard Group’s shipyard in Leirvik in Norway.

REMØY MANAGEMENT AS will operate the ship during the lifetime of the contract. Mr. Ståle Remøy, CEO of REMØY MANAGEMENT, stated: - We look forward to working with FAFNIR OFFSHORE on this important assignment. This is our first project, of hopefully many, with FAFNIR. The ship is a state-of-the-art vessel and it will be a pleasure for our crew to operate it in the challenging conditions of the Arctic region.

46

delivered newbuilds

photo: Bjørn ottosen

47

delivered newbuilds

HAVYARD 832

HAVYARD 833

Heading straight to work

Environmental winner

NEW B UILD 1 1 0 Delivered:

NE WBUILD 107 October 2012

Delivered:

Name: Vestland Mira

Name:

Shipowner: Vestland PSV AS

Shipowner:

TECHNICAL FACTS

TECHNICAL FACTS

Design:

Havyard 832L PSV

Loa: Breadth:

86.00 m 17.60 m

Design:

December 2012 Havila Charisma Havila Shipping

Havyard 833 L PSV

Loa:

92.80 m

Breadth:

19.60 m

Only seven minutes after the naming ceremony, the

Havila Charisma was named in a ceremony on

Havyard-designed vessel Vestland Mira, went straight

Bryggen in Bergen, Norway in December. The vessel is

into work on a contract in The North Sea.

of a Havyard 833 L design and has been constructed at Havyard Group`s own shipyard in Leirvik in Sogn,

The PSV vessel is of a Havyard 832 L design, contracted

Norway.

by Vestland PSV AS, a fully-owned subsidiary of Vestland

- This is the most environmentally friendly vessel that

Offshore AS.

Havila has ever ordered. It is perhaps one of the most

– Havyard has carried out very solid work when

environmentally friendly vessels in the world, says CEO

constructing this vessel, both technically and esthetically,

Njål Sævik of Havila Shipping.

says Director Per Vidar Hille of Vestland Offshore.

After the naming ceremony, the vessel sailed straight Hille is particularly impressed with Havyard`s own shipyard in Leirvik in Norway.

– Being able to run such a demanding business in this area, where you would think that logistics and access to qualified personnel is a challenge, is simply incredible to me.

48

into work on a long-term contract for Statoil.

FROM TINY ATTIC delivered TO HAVYARD newbuilds HOUSE

HAVYARD 832 Naming ceremony in Aberdeen

NEW B UILD 1 1 2 Delivered: Name: Shipowner:

March 2013 Ben Nevis Global Offshore Services

TECHNICAL FACTS Design:

Havyard 832 PSV

Loa:

79.80 m

Breadth:

17.60 m

In March Havyard Group delivered its sixth newbuild to the Indian shipping company Global Offshore Services.

- Many think we have gone against the flow ordering vessels in Norway, says Aditya Garware, managing director of Global Offshore. - We think, however, this is not strange. We focus on providing quality services to our customers and then reliability and operability is extremely important.

The Havyard 832 is a success story for Havyard and Ben Nevis is the fifteenth newbuild of this design which is delivered.

Improving life at sea

Improving life at sea.

This vision shall motivate us to improve everyday life of all who are involved in the operation of a vessel of Havyard Design™ or vessels that have Havyard equipment on board.

HAVYARD GROUP AS Havyard Design and Solutions AS Havyard Ship Technology AS Havyard Power and Systems AS MMC as

HAVYARD GROUP AS Postboks 215 6099 FosnavĂĽg, Norge Telefon: +47 70 08 45 50 www.havyard.com