Lloyds Register Energy Lloyds Register

duplex and super-duplex with specific attention to high-integrity castings. The Cividale Group also produces steel ingots, cast iron and die-cast aluminium parts for the automotive and household appliances sector. Within the Cividale Group, there is also a forging shop capable of producing forged items up 20 tons in delivery condition. Moreover, it is also involved in producing drawn and enamelled copper wire.

Cividale’s core business is supplying roughmachined castings. Nowadays it has the capability to provide fully finish-machined parts ready to be installed and to take care of any other specific treatment that may be required by its customers for each specific project: Special thermal heat treatment, overlaying and soldering of special metals, ‘revamping’ of hydraulic turbines. We act as a project manager for our clients, taking care of the whole process, from foundry design to production, from quality certification to delivery on site.

The main sector served by the group is the power generation industry, for which the Cividale Group manufactures the critical components of the power plants. Other sectors supplied by Cividale are oil & gas and off-shore as well as ship-building and the mechanical industry. The group’s clients include some of the most important worldwide business players operating in these sectors. A leader on the domestic steel casting market, the group is also among the most important producers in its industry in both European and overseas markets.

Russian JV

Since Industry Europe last spoke to the company, there has been an important addition to the Cividale family. In fact, Cividale has chosen to increase its focus on the Russian market, where it has set up a joint-venture with Russian company BVK in Chelyabinsk. The total investment amount is €45m, where the share amount of Cividale represents 30 per cent.

The main role of Cividale in this project has been in lay-out design and knowledge transfer, as well as in terms of operational staff training. This joint-venture has been established to create a Russian based foundry, but also to supply the country directly with the rest of the Cividale range. The works, which was officially opened on 30th September 2013, occupies an area of 150,000m2, of which 35,000m2 are covered, and employs 300 people. The target for the first three years is that of achieving an annual output of 10,000 tonnes of steel castings for valves used in the pipelines located in this region of the world (increasing to 16,000 tonnes in the following years). In terms of ingots the target is of an immediate output of 20,000 tonnes. “The Russian market is growing and we aim to supply it with a high-quality range which

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was not yet manufactured there,” Mr Scordamaglia explained.

Another important novelty in terms of products is that of subsea compressors. Recently the first prototype was built for an important client and this has been followed by a similar project for another prestigious customer. “We are also always investing to update the quality of our production systems. In fact, our strategy is to offer a high-quality range of products, which really offers an added value to customers, so as to face off competition, especially that which originates in low cost countries. This year we have invested €15m in this area. We also continuously pay attention to work safety and environmental issues and we are already ISO 14001 certified and implementing OHSAS 18001 in all our companies.

“Last year, we also made an investment in Bosnia, acquiring our own deburring facilities, to carry out one of our ancillary activities instead of outsourcing it.”

The group has increased its sales on the North American market as well as in Russia. “Now, after the establishment of our Russian joint-venture, we are at the point of a technological consolidation step, as the opening of the Russian foundry required a significant effort and continuous support in terms of human resources. We will then concentrate on high technology products. We carry out work in partnership with Udine Innovazione (linked to Udine University) with regard to developing new special steel grades. Specifically, a lot of work has been done on steels, in particular duplex, super-duplex and Inconel, materials which are especially used in the North Sea, because of their high resistance to aggressive corrosion.”

Cividale’s suppliers play an important role in helping the group to offer high-quality, value-added products, by supplying it with upto-date products, components and software. In particular Danieli and IMF have worked closely with the group with regard to the setting up of the Russian foundry, respectively supplying furnaces and moulding systems. In Italy itself there are a number of important suppliers, including the company Presezzi for finish machining components. With regard to cutting-edge software systems the cooperation with Engine Soft is very significant.

“ At the moment there has been a general decrease in the power generation sector in terms of lack of new plants being built. We are obviously feeling this and responding by concentrating on maintaining our market position and widening it through the acquisition of new clients. We are also compensating for this decrease in power generation with an increase in the process pumps and compressors which we supply to the oil & gas industry. We hope to see an improvement in the power generation industry from mid-2014. Power generation will nevertheless remain our core reference market.” n

LLOYD’S REGISTER ENERGY

The Big Picture explained by Sebastian Buca

Can you explain to us what the Lloyd’s Register group does and when it was founded?

Lloyd’s Register (LR) is a global engineering, technical and business services organisation wholly owned by the Lloyd’s Register Foundation, a UK charity dedicated to research and education in science and engineering. Founded in 1760 as a marine classification society, LR now operates across many industry sectors, with over 9000 employees in 78 countries.

LR has a long-standing reputation for integrity, impartiality and technical excellence. Our compliance, risk and technical consultancy services give clients confidence that their assets and businesses are safe, sustainable and dependable. Through our Global Technology Centres and research network, LR is at the forefront of understanding the application of new science and technology to futureproof our clients’ businesses.

LR’s expertise spans from Oil & Gas to Power and Manufacturing. The LR Group is constituted by two entities: Lloyd’s Register Limited, representing the operational entity, where all the profit is made and the Lloyd’s Register Foundation, which manages the profit by partially redistributing it internally, for growth, development and training, while the other part is used for our educational trust, LRET and for some other charity purpose.

There are no shareholders or owners, but a board of trustees managing our Foundation. This is an important aspect which guarantees our impartiality and integrity and differentiates us from all our competitors.

Our independent status is derived by the Lloyd’s Register Foundation, which is compliant with the UK Charities Act. This ownership structure allows Lloyd’s Register Energy to offer advice that is free from commercial constraints. Lloyd’s Register Energy’s work helps to keep society’s critical energy infrastructure safe and reliable, it also helps to promote public education within the energy industry, engineering and technological disciplines by contributing proceeds to charity.

We exist to support a safer society, protecting life and property, and not public shareholder returns. Our business identity represents a move beyond the expectations of the past towards the future of global energy assurance. It continues the tradition of respecting the trust our clients place in our hands.

The Lloyd’s Register Group owes its name and foundation to a 17th century London coffee house owned by Edward Lloyd, a meeting place of merchants, marine underwriters and others connected with shipping. In 1760, customers of the coffee house formed the ‘Register Society’ to examine merchant ships and ‘classify’ them according to their condition. The first Register of Ships was printed in 1764.

The early 1900s saw our Group widening its expertise in other sectors, such as Industry and later on Energy as well as management systems certification.

Can you explain the Oil&Gas and Energy services that Lloyd’s Register offers?

We provide design appraisal, inspection and consultancy services to asset owners, manufacturers, operators and engineering procurement contractors, particularly those responsible for assets which could pose a risk to people or the environment.

Our combination of asset knowledge, technical expertise and ability to generate value quickly, helps clients’ asset management and safety assurance across the energy supply chain – from oil fields and pipelines to refineries, power stations and manufacturing – as they tackle some of the largest and most complex challenges in the commercial world.

Oil&Gas covers two areas: Upstream, including exploration, rigging / drilling; and Downstream, including the processing of crude oil, refineries and petrochemicals. Finally let’s not forget that the term ‘energy’ encompasses both traditional energy (thermoelectric, hydroelectric, etc.) and renewable energy.

What clients do you target and offer services to in Italy?

We focus on the major players of Oil&Gas, Energy and Transportation. And by players we mean both end users on one hand and on the other the people who build the platforms, and all those who carry out EPC (Engineering, Procurement and Construction) contracting.

We believe it is our responsibility to ensure that every one of our clients has the technical support and guidance needed to build and operate energy plant safely and efficiently. We give energy operators confidence that they are effectively addressing today’s economic, legislative and corporate responsibilities.

What is your general opinion of the Italian market?

There are many Italian companies which manufacture components for the Oil&Gas and Power sectors and which are recognised worldwide as top suppliers, both in terms of technology and innovation as well as in terms of high quality. We are talking about manufacturers able to grow and be successful even in the tough economic and financial conditions we all experienced in these last years, because all of them invested most of their profits, instead of distributing them, in R&D, efficiency programs, Total Quality, which boosted their growth and presence on the local and international markets, demonstrating that Italy plays a top role in these type of businesses. Lloyd’s Register, as high level quality service deliverer, serves these companies by using the same approach, expanding year after year its niche market share and confirming more than 250 years of excellence.

What should the Italian market focus on? Are excellence and quality values to be developed, in contrast to other countries which concentrate on quantity, and if so, what should be done to be able to focus on these values?

In my view, the Italian companies have to compete with their foreign competitors on Quality, Innovation and Creativity.

Another important aspect which should differentiate them from others is the long-term vision and strategic plans in terms of presence and development. These are the ones which plough their profits back internally, investing in order to reach cutting edge technological and quality level, cooperating with the best universities, such as Politecnico di Milano / Torino / Bari, retaining and growing their talents and creating a motivating workplace.

The market awards the Italian companies which pursue a quality not quantity and low price strategy. This should be the winning recipe for all western countries industries. In the current challenging and complex energy environment, initiatives that nurture technical innovation can no longer be an afterthought for business