Shipbuilding White Paper

Bringing safety onboard through better cabling solutions
(New Update: September 2007)

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INTRODUCTION: THE NEWBUILDING WAVE ADVANCES II. recent orders according to ship type. NEXANS: EXPERTISE AND WORLDWIDE COVERAGE IV. and provide information about how Nexans is serving this market.CONTENTS I. like naval shipbuilding and offshore topside vessels. The third section presents Nexans’ overall product offer and explains Nexans’ service approach. and other market drivers. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 2 of 19 . APPENDIX: SOME RECENT SUCCESS STORIES Synopsis This report is intended to give an update of global shipbuilding. CHALLENGES AND CUSTOMER EXPECTATIONS III. the major trends in 2006−7. This report is followed by an Appendix containing some recent success stories. the shifting lineup of shipbuilding nations. It then focuses on some major challenges and lists some customer expectations of the cable industry. It opens with a brief introduction explaining the continuing high level of shipbuilding activity worldwide.

The emerging middle classes should then comprise 15% of the world’s population which means three times the numbers of consumers as today (i. the World Bank’s projected growth figures seem to promise a rosy future for the industry and its suppliers. As always. it is an important economic factor and competitive locational asset. and world trade is predicted to further triple over the next 25 years. India. because of past uncertainties.R.I. closures and poor profitability. Secondly. Nuremberg. and especially cable manufacturers.I.C. high consumer demand means higher freight rates which justify and indeed provide the investment needed for new shipbuilding. Average economic growth in developing countries is estimated at over 6% annually. especially with new regulations concerned with creating a safer. INTRODUCTION: THE NEWBUILDING WAVE ADVANCES “The shipbuilding industry is a high-tech branch with a future.2 billion). nearly 25% of the world’s existing fleet is being replaced. 15 June 2007 A swell in the orderbooks After having been dominated for nearly two decades by excess capacity. Although predicting future freight rates is always uncertain. and China). 1. countries (Brazil. 1 These figures are taken from “The shipbuilding market in 2006−7” published by Barry Rogliano Salles 2007. short crests of activity often followed by long troughs of uncertainty and relative stagnation. a development which will affect all suppliers. German Federal Minister of Economics and Technology First European Shipbuilding Conference. Since 2003 newbuildings have seen exceptional growth on the orderbooks. cargo shipping still remains the most cost-efficient way of moving goods over long distances (especially in terms of energy efficiency and reduced pollution). especially in the B. At present. and a renewal is in order. with a third of the world’s population undergoing rapid development. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 3 of 19 . Russia. the world fleet has inevitably aged. The introduction of the IACS regulations in 2006 to create “more robust and safer ships” will no doubt oblige builders to come up with new designs to optimize size and reduce energy consumption. It also plays a pioneering role for environmental and climate protection. non-polluting shipping industry. that figure is close to 50%. Spectacular economic growth has repercussions on shipbuilding for two reasons: first. and in some sectors. product innovation helps stimulate demand.1 What has driven this maritime expansion is the fact that international trade has nearly quadrupled in the past three decades. and 2006 confirmed this trend despite the fact that shipbuilding is a cyclical industry with sudden.e. the shipbuilding industry has being enjoying the biggest and longest boom of its history.” Michael Glos. Barring a catastrophe of global proportions.

Demand largely outpaced the most optimistic expectations. with more than 169 million dwt (deadweight tonnage) of new orders which represents nearly 3. while the Japanese portfolio continued to progress.97 billion) up by 11% 3.60 billion € ($4.3% 3.2% Nexans estimates the overall cable market in shipbuilding to be around 650−700 million €. four or even five years.70 billion € ($5. Turku. More than 90% of the shipbuilding industry is still located in four areas (Korea. Barry Rogliano Salles. with projected annual growth of 8−10% Navy: 80−100 million €. Finland. China and the EU). However.40 billion) up by 6.83 billion € ($17. However. double what was ordered in 2003.3 The market is divided between commercial. the current orderbook in the shipbuilding industry has a contract value of 216 billion € ($298 billion). navy and offshore topside.8% 9. 2007.37 billion € ($11.99 billion € ($13. as follows: Commercial: 350 million €. Korea maintained its first rank among shipbuilders. with projected annual growth of 2−3% Offshore topside: 220−250 million €. What this means in practical terms is that shipyards are fully booked for the next three. with Nexans representing between 25−28% of the global market share. it was China that 2 3 According to “Long Term Trends in Shipbuilding” by Stephen Gordon.According to a leading research service.16 billion) up by 37. with annual growth of 15−20% Further major trends in a record year According to the longstanding Paris-based shipbrokers.000 plus vessels is shared between 770 owners from 61 countries. European shipowners are still the biggest investors. like the CSR (Common Structural Rules) developed for tanker and bulk carrier structures which came on line as of 1 April 2006 stimulated demand for tankers and bulk carriers.81 billion € ($5.20 billion € ($4.10 billion) up by 21.91 billion € ($4.9% 8.2 Greece Norway Germany Japan United States China Denmark Italy South Korea France The top 10 countries investing in new shipbuilding in 2006 12. 2.1% 3.1% 9. New regulations.42 billion) up by 46.5% 2. Japan. the current shipbuilding climate can be qualified by five major trends which will have an impact on the evolution of the market: 1.55 billion) down by -20% 8. 3. Clarkson Research.26 billion) up by 8. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 4 of 19 . The orderbook of 6. with over 37 billion € ($51 billion) of investment in 2006.02 billion) up by 54.71 billion € ($13.000 new ships in one year alone.09 billion € ($11.70 billion) up by 222.5% 3.79 billion) up by 101. 17 January 2007 Nexans figures compiled by Salvatore di Giorgio for Shipbuilding Seminar.

Also. but also containerships and ro-ros. and India. tripling their orderbook in recent years. Western and Eastern European builders have maintained their volumes. Singapore’s dozen shipyards are doing well. however 2007−8 seem better. The fact that established shipyard capacity has been tied up has also opened opportunities for new shipbuilding zones like Vietnam and India. 5 Vietnamese shipyards. Meanwhile European builders are full until 2010. steel prices. while prompt deliveries (achieved by productivity improvements and new facilities) have further boosted prices. India and Europe. 17 January 2007 See the fore-mentioned Barry Rogliano Salles 2007 report for figures on China. and tugs. Builders’ financial situation remains fragile. tanker and containerships. and moving from 12th to 5th place in world rankings. too. few shipyards can deliver more than five or six ships per year. Clarkson Research.7 million gt. and Long xue near Hong Kong. salaries. platform supply vessels (PSVs). but unlike their Asian counterparts. Newbuilding prices are definitely up. their expertise. the quality of the finished product and the respect of contractual undertaking remain their strength. 5. consult “Long Term Trends in Shipbuilding” Stephen Gordon. 4 5 Once again. especially on small offshore units. Chongming Island and Changxing near Shanghai. while back in 1996 investment in shipyard infrastructure was predominantly in Japan (36%) and Europe (30%). Regional shipyard investment also reveals a sea change in shipbuilding capacity. According to Clarkson Research Services4. with an orderbook that rose from over 30 million gross tons (gt) to some 48. 4. a capacity to understand and take into account the particular requests of their clients. have made amazing progress. especially for bulk carrier. One really positive piece of news for European shipyards is a reaffirmation of customer confidence and loyalty: Higher market prices and better delivery dates have given them the opportunity over the course of the past three years to recover clients that had deserted them in favor of Asian shipyards. machinery. China has benefited from the strong demand for tankers and big-sized bulk carriers which it has been able to deliver at more competitive prices than their Korean or Japanese competitors.saw the most significant growth. some 35 greenfield expansion plans and 12 expansion plans to existing yards are well underway. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 5 of 19 . with its 15 shipyards is positioning itself to compete with its Chinese counterparts. Their goodwill. Vietnam. including the COSCO facility and Qungdao Haixi near Beijing. High freight rates have encouraged new orders. although extended time frames are exerting pressure. With the Draft Development Policy for China’s Shipbuilding Industry aimed at turning China into the world’s largest builder by 2020. today the major investments are now in Korea (39%) and China (25%). a weak dollar and the supply of main components is playing havoc with future planning.

6 7 The Shipbuilding Market in 2006−7 published by Barry Rogliano Salles. often into 2010 or even beyond. growing in 2004 and 2005 at a faster rate than in any other region of the world. They were not just delivering “off-the-shelf” products favored by many of their Asian competitors. local manufacturing presence. providing custom-built solutions to meet their clients demanding requirements. The original document. Verheugen confidently stated that the eight fundamental aims of LeaderSHIP 2015 were vindicated by a surge in sales: Ships produced in Europe are of the highest quality in terms of complexity. 8 Speech by Günter Verheugen at Nuremberg on 15 June 2007. The Progress Report was issued on 25 April 2007. European yards have seen the value of their new orders more than triple between 2002 and 2005. the LeaderSHIP 2015 Progress Report. 2007. on the back of a 20% increase in output. Early indications are that these positive trends are continuing and that 2007 should be another good year for Europe’s worldclass shipbuilding industry. They have further increased by more than 40% in 2006. Both documents are available on the Internet. and was largely commented on at the two-day European Shipbuilding Conference in Nuremberg in mid-June. the clientele of European shipyards is essentially European. industrial offsets and technology transfers. LeaderSHIP 2015 : Defining the future of the European shipbuilding and shiprepair industry was originally published in 2003.Outside big American cruise shipowners. they were. European shipyards are almost all booked well in advance. the healthy state of the European shipbuilding industry was reaffirmed when the EC VicePresident.8 Whether in serving its Asian Pacific customers by providing them with timely deliveries.7 Faced with the drying up of ship orders in Europe and declining newbuilding prices. Nexans is determined to be a truly global supplier in both senses of the word: we operate worldwide to serve an international industry and supply virtually every kind of cable used in today’s shipbuilding industry.6 In the EU Commission’s Working Document. Günter Verheugen stressed the innovative strengths of European ship manufacturers. or in working closely with its European partners to add value to its products and services. above all. safety and environmental impact − frequently surpassing the relevant regulatory requirements. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 6 of 19 .

New orders rose by some 30% in 2006 over the previous year. with over 60% of orders. with Japan building over 60% of the ships in the portfolio. This segment is dominated by the race for ever-larger PostPanamax sizes. Containerships: Demand for containerships is still strong. largely being built in Japan.500 teu10 at the beginning of the nineties. Korea is still the major player. 14. teu refers to twenty-foot equivalent unit. new gigantic yards in China (Jiangnan and Rong Shjeng) have been able to obtain sizable orders at very advantageous terms for shipowners. Vessels which breach the Panama Canal maximum dimensions. LNG carriers: After a three-fold increase in 2003−4. The fleet under construction. the size of a container. Japan and increasingly by China. although European shipbuilders and Korea are present. Tankers: Demand for tankers has continued to see unprecedented growth with 2006 orders increasing by nearly 60% over the previous year. The annual rate of growth of the fleet will be on average 14% which exceeds the forecasted evolution of international trade. SPECIALIZED SHIPS Stainless-steel chemical carriers: The number of newbuildings has doubled since 2005. 4. Given levels of world economic growth. with orders increasing slightly. there will soon be a shortfall of this type of vessel pushing shipping rates up and leading to new orders. The orderbook is dominated by Korean builders (100 ships) and Japanese builders (30 ships). In fact. although China is anxious to enter this market. New IMO regulations and deadlines (by 2010) for replacing single-hull ships with double hulls have stimulated this building activity which is dominated by Korea. orders have dramatically declined since 2005 due to this recent major expansion (almost 90% of the fleet in service) and delays for production projects and reception terminals. 2007. The projected enlargement of the Panama canal (by 2014) is likely to support this trend. represents approximately 25% of the active fleet.Commercial orders according to ship type9 STANDARD SHIPS Bulk carriers: Given the fact that the average age of the bulk carrier fleet is about 11 years. From. current renewal comes as no surprise. 9 10 The Shipbuilding Market in 2006−7 published by Barry Rogliano Salles. Tank and pipe complexity and the high price of stainless steel make these specialized carriers both complex to build and expensive. with two-thirds over this age and a third over 25 years. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 7 of 19 .000 teu is now the norm. allowing for substantial economies of scale.

mostly for Pure Car Truck Carriers (PCTC) to accommodate the movement of some 19 million vehicles by 2015. all placed with the four big European specialized builders. Ro-ros: Although the existing fleet is superannuated (average age is 20 years. with 43% over 25 years). Aker. European builders still have the lion’s share of the market (47 ships out of 73 in the portfolio). orders have been disappointing. through its own research and its participation on maritime standards boards. new orders have continued to climb from a total of 150 ships to 168 ships. while two thirds of Very Large Gas Carriers (VLGCs) are now being built in Korea. delivery and service of virtually all of the above standard and specialized ships by supplying both off-the-shelf and customized cables. with 13 firm orders plus one option. Cruiseships: 2006 was an excellent year for cruiseships. safety (enhanced fire-performance cables) and specialized needs (Cryoflex cables for carrying liquefied natural gas). Nexans is involved with the development.LPG 11 and ethylene carriers: A market in full expansion since orders have recently doubled. presently reduced to three since the purchase of Chantiers de l’Atlantique by the Norwegian group. In many cases. largely due to the renewal of an aging fleet (average 17 years). however the number of ships actually under construction has increased. Small LPG carriers are manufactured by the Japanese. 11 Liquefied Petroleum Gas White Paper – Shipbuilding Industry Update Edition: September 2007 Page 8 of 19 . Nexans has been able to make a contribution to performance (increased data capacity for maritime LANs). Distant delivery dates and a hike in newbuilding prices have had a dissuasive effect on a market which has been traditionally dominated by European builders. manufacturing. Ferries and Ro-Paxes: The number of new orders for roll-on-roll-off passenger-ship/ferries has dropped in 2006. Car carriers: Due to the continuing growth of the world automotive industry and international outsourcing.

Long-Term View. including cabling. amphibious assault ships. the US Navy’s fleet has shrunk to 276 ships. and is definitely apace worldwide. In the US. in India. growing national of subfor both However. but that acquiring them calls for a definite plan to avoid the demise of a shrinking. industry. destroyers and submarines” have seen two seven year cycles of lean years.C. Winter has been calling for a “tough love” scenario for the American military shipbuilding industry.000 jobs since 1991. with a loss of 24.” 12 Following overruns of the speedy Littoral Combat Ship for close-to-shore operations and the design of the stealth DDG-1000 destroyer. Forty-two naval platforms. These new buildings are not just for littoral operations. Meanwhile. submarines. see D. frigates. Meanwhile. for background of what was actually said. aging navy. the navy is reshaping its force structure. including two aircraft carriers. In Southeast Asia two significant naval developments are likely to reshape the future of the maritime security environment. before the Senate Armed Services Committee. this overture towards outsourcing has been brought to an abrupt halt by the recent call by Navy Secretary Donald Winter for the navy to “reassert its control over the entire shipbuilding acquisition process. cruisers.pinionasia. naval shipbuilding is far less national. From nearly 600 ships under the Reagan era. six submarines and several destroyers and frigates are currently under construction.” published 9 July 2007. but above all to safeguard their energy sea-lanes. are under construction at various shipyards in China. and “Statement of Honorable Donald C. amphibious assault ships. and there is a strong trend towards multinational naval conglomerates and alliances to promote the sale of warships worldwide. However. In the Far East and Europe. self-sufficient. Shipbuilding and Force Requirements. there has been a trend towards more subcontracting components and systems. Both China and India seem to have opted for a blue-water fleet not only to protect their territorial and maritime interests. Navy Secretary Winter emphatically maintains that National Defense Strategy requires 313 ships. including nuclear submarines. Winter: “Navy Transformation: A Stable. As many as fourteen different classes of warships.” Heritage Lecture delivered on 7 February 2007. the production of warships is a largely protected. 13 Consult Vijay Sakhuja’s article in Opinion Asia on “Emerging Contours of Asian Naval Power” available at www. the six major shipyards that built the US Navy’s largest ships (aircraft carriers. but rather for power projection and designed to undertake long-range operations in the western Pacific Ocean through the Straits of Malacca into the India Ocean. Winter. The US has even looked overseas shipbuilders and suppliers. 3 May 2007. and littoral combat ships. Subcommittee on Seapower.Naval shipbuilding Naval shipbuilding is a completely different market sector. 13 These includeéprinté186 White Paper – Shipbuilding Industry Update Edition: September 2007 Page 9 of 19 . 12 See the widely circulated article by AP writer David Sharp: “Navy Reasserting Control of Shipbuilding. Secretary of the Navy.

janes. assure the protection of a group of vessels against high levels of threat and massive attacks by anti-naval missiles.shtml Consult Bureau Veritas’ Maritime Division: “Marine Business Review 2006-2007” White Paper – Shipbuilding Industry Update Edition: September 2007 Page 10 of 19 .n. reduce crew size. India and South Korea are seen as the key drivers of this continued growth. it often customizes its cables (e. 15 These frigates. 14 15 From Jane’s “Naval market in Asia-Pacific on a Rising Tide” at www. the largest single European contract was the classification of seventeen European multi-mission FREMM frigates and the HORIZON-class frigates which will be put into service from 2007.” China. a cooperative effort between Italy and apart from their sales to the Asia-Pacific region (for example Armaris/DCNS sale of six Scorpene submarines to the Indian Navy). by 2010]. Since every warship is made-toorder.forces/news/ini/ini050520.According to Jane’s. and ensure high operational efficiency and survival. Nexans provides a wide range of quality cables from a single source. Nexans constantly innovates to improve data speeds. maintenance and repair.1.14 As for Europe. “the Asia-Pacific region will overtake Europe and the US as the world’s single largest market for new-build naval platforms and systems within the next five years [i.e. To keep pace with the information revolution. which fully conform to the world’s strict naval standards. smaller and lighter cables) so that ship speeds and armament loads can be optimized. Wherever possible Nexans applies proven commercial and interoperable solutions for easier procurement. protect combat & control systems.g.

but also operates one of the world’s most advanced surface cable laying vessels. There are a wide variety of vessels being built today. repairs. and ice-strengthened vessels for operation in Arctic conditions. research ships for seismic and other work. Between these two extremes are a whole range of bulk carriers. which range from complex umbilicals to highly specialized mud-resistant cables and accessories. or sent through a pipeline. exist highly complex ships. and onshore remote management and support have created a new niche of topside vessels (some of which have been mentioned above under Specialized Ships). crane and heavy lift vessels. like Floating Production System and Offloading vessels (FPSOs). In fact. diving support ships. at the other end. As with the commercial and naval ships. crew transportation vessels. chemical carriers. whether for Middle-Eastern. Nexans has developed an entire set of offshore solutions both for subsea and topside. which recently laid a 28 km cable across the Straight of Gibraltar and in 2008−9 will lay a 292 km subsea HVDC link providing power-from-shore for the Valhall field in the Norwegian North Sea. process it. and so on. CHALLENGES AND CUSTOMER EXPECTATIONS For Nexans. shipowners − and engineers and subcontractors who provide materials and do turnkey installations. They include new generation deep-sea drilling ships and semi-submersible drilling platforms and Floating Production.e. or North Sea conditions. Pacific Rim. and store it until the oil or gas can be offloaded onto waiting tankers. The simplest vessel type is the barge. Deepwater exploitation. high energy prices and also fears about energy security in an unstable world have continued to drive the offshore market during 2006. ro-ros and cruise ships. ferries. dredgers and oil recovery vessels. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 11 of 19 . but demand is also driven by the final customers themselves − i. Gulf of Mexico. the shipbuilding sector is primarily shipyards. II. the Skagerrak. There are also a whole range of supply vessels. containerships. Storage and Offloading (FPSO) vessels which take all of the oil or gas produced by a platform. aircraft carriers and submarines. tankers. It has not only been an innovator in developing Remote Operated Vehicles (ROVs) for cable laying on the sea bottom. However. these specialized oil and gas vessels have demanding cabling requirements. in terms of safety and performance. a move from stationary platforms to floating vessels. battleships.Offshore topside vessels Another area which is positively influencing the shipbuilding industry is offshore platforms and vessels for the oil & gas industry.

Computer-assisted design (CAD) is now integrated with Web-centric information sharing. warehousing. in one consolidated system. A paramount concern for both commercial shipping and naval defense is safety for the ship. to serve their customers. and suppliers and shipyards. Fourthly. Since electrical power and IT are vital. They demand constant innovation and customized solutions. Cycle times must be reduced. and product availability worldwide for maintenance. while several years ago. refits and modernization. and advanced IT-based technologies have created a number of challenges.g. suppliers must be able to serve distant shipyards. they expect cable manufactures to find ways of keeping quality uniform. and White Paper – Shipbuilding Industry Update Edition: September 2007 Page 12 of 19 . Thirdly. crew and passengers. However. They expect quality and conformity to the highest standards. customization. purchasing. especially when some shipbuilders are selling vessels at near to production costs. today they are producing more ships in parallel. but also in terms of cooperation among suppliers. They want products delivered on time. As with other industrial sectors. buyers are looking for more competitive solutions based on a closer customer-supplier relationship. plant maintenance. distribution. which requires a specific and ongoing expertise. shipyards produced one or two vessels a year.” every type of wire and cable present on land can be found somewhere onboard. outsourcing cabling requirements. Since shipyards have vastly improved their productivity. with the ability to deliver to far-flung points from multiple sources of provisioning. shipbuilders look for multi-system packages from a single source. efficient. second and third tier suppliers must have resources on the ground. increased outsourcing. etc. In addition. each one according to the national or recognized standards of the buyer. since local presence and technology transfer are important matters for governments (especially in China). first. shipyards expect consistent quality and performance. There is definitely a move from parts and products towards prefabricated modules and systems which can be easily mounted in the hull. The new booming shipbuilding environment. thus gaining precious time. even though production is done in countries where labor conditions and costs can vary greatly. since shipbuilding is a world industry. Quality standards and international certification are essential to a shipyard which can be building several kinds of vessel simultaneously. Also. This more flexible approach requires an increasing exchange of information among the shipbuilding community. not only from the point of view of product. integration is a must. cost saving programs will continue to be important for both shipbuilders and their suppliers. This will mean strong supply chain management. driven by consolidation in the industry. electrical and data cables must be reliable. manufacturing. In the integrated onboard environment. SAP) which will eventually incorporate planning. and easy-to-install. First. and that requires improved efficiency. Secondly. shipbuilders are modularizing processes and improving shipyard infrastructures. can allow shipbuilders to cut costs and concentrate on core concerns. Because ships are often floating “mini-cities. This can be achieved by new Internet-based supply management platforms (e. upgrades. competition.To cut costs and improve efficiency. including production facilities. Bringing down costs will not be easy. quality control.

too. innovation is going to be extremely important for shipbuilding in the coming years in terms of manufacturing processes. this means the latest in fire-performance cables to protect passengers. safety. logistics and the ships. Dubai. The fifth challenge is innovation. themselves. or even no maintenance targets are an important part of innovation. literally every kind of shipboard cable a proactive partner who can co-design and manufacture integrated cabling systems ability to serve remote newbuilding births (Vietnam. crew and infrastructure. In fact. From the cabling point of view. and low or no maintenance impeccable logistics and continuity of supply 16 See once again the “LeaderSHIP 2015 Progress Report” published 25 April 2007 (the quote is from p. Supplier-shipyard integration is based on shared databases. long before production takes place. easy upgrades. but to prolong its life-cycle. Low. It requires a new spirit of cooperation among companies who may have previously seen themselves as competitors. “one out of four deliveries is based on a completely new and innovative design or prototype. As the recent “LeaderSHIP 2015 Progress report 16 vigorously re-affirms. not only to achieve energy savings and increase efficiency. shipyards. and their first. and integrated supply-chain management systems. interchangeable systems fire-safe cabling and safe manufacturing and recycling processes durability. etc. 4) White Paper – Shipbuilding Industry Update Edition: September 2007 Page 13 of 19 . Customer expectations of cable suppliers Shipowners. has to be self-contained and omnipresent. second and third-tier suppliers have several general expectations of a cable manufacturer • • • • • • • • • a full range of products. Iran. in Europe. Post-Panamax mega-ships) must make a quantum leap in technologies. Russia.means getting everyone involved early in the engineering and development process. the next generation (e. Brazil.” Given the longevity of the average ocean-going vessel. interoperable.g. Given the autonomous floating environment of ships.) important economies of scale industry-specific R&D to develop light-weight and modular solutions common. Computer Assisted Design (CAD). The sixth challenge is safety.

and fully-integrated systems. NEXANS: EXPERTISE AND WORLDWIDE COVERAGE With its global offer. a complete range of LV/HV power cables for all yard and shipboard energy needs. Nexans cables are being installed on ships around the world. high performance in terms of heat. Nexans is compliant with most of the world’s commercial and naval standards: Cable standards • International IEC • American IEEE & UL • NEK 606 for offshore • NATO specifications and Mil-Dtl-24643. Nexans. market-driven innovation in partnership with shipbuilders and installers. including every shipyard in the US.KR. cold. etc. halogen-free (IEC 607541/60754-2) Today. has the capacity to produce every type of cable used on a modern vessel. low-smoke (IEC 61034). TC Canada. for naval defense • German VG & DIN • Japanese JIS specifications Moreover. custom-designed cables with value-added and efficient modular installation. humidity. Gost-R Russia Approved ISO 9001 quality standards Qualified Products List (QPL) US Navy German Defense Department (BWB) Approved advanced fire-performance (IEC 60332-3: Flame-Retardant. expertise in connectivity at all levels. Nexans cables meet shipbuilding guidelines contained in the following: • • • • • • ABS. since standards are so important to this international. BV. DNV. GL. NK. oil. yet highly regulated industry. watertight HFFR cables for below waterline safety and circuit integrity. Unlike its competitors who deal with separate suppliers and sub-contractors. with production facilities in Europe. Nexans provides a wide family of onboard marine cables. reduced weight and volume through advanced XLPE cable designs. Asia and the US. mud resistance etc. vibration. In fact. As a global supplier to shipbuilders.III. IEC 60331 and BS 6387: Fire Resistant). salt corrosion.. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 14 of 19 . CCS. and a local presence and fast delivery wherever the customer is located in the world Moreover. LRS. Nexans and its subsidiary Kukdong supply 30% of the global shipboard cable market. Mil-Dtl-24640. advanced fiber and copper LANs for next generation maritime telecommunications. Nexans is the worldwide cable leader on the shipbuilding market. RINA Approved USCG America.

These cables are tested at 1.” Kukdong. In the event of fire. Secondly. while gaining an understanding of the real needs of its Chinese customers.800 ton submarine being built by Hyundai Heavy Industries (Korea) according to strict VG-95218 German standards. These fire safety cables meet the highest standards of the International Electrotechnical Committee (IEC) and are approved by leading certification bodies. a Nexans company. was acquired in 2003. Current initiatives include the strengthening of the north Asian market. especially for the naval and cruise ship markets. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 15 of 19 . Nexans provided 2. for which Nexans has set up a special China-based plant which is now working closely with local shipyards to further reduce lead times. crew and passengers. and to pack them according to installation zones on the vessel under construction. and of developing high-growth markets in the Far East and Asia. Gérard Hauser.Kukdong Electrical Wires Company. fully outfitted a 1. designing products to make them easier to install onboard. located in South Korea. and ensure low smoke. in France.000°C. Thirdly. The company’s business is predominantly dedicated to marine cables for the Korean and Japanese markets. “This acquisition corresponds to two of our main strategic directions: of realigning Nexans towards high value-added products. beyond the product itself. to eliminate all risks of short circuits and to offer cables that will be able to continue function. increasing the flexibility of cables for fitting into tight places. Nexans is constantly improving its just-in-time service. According to Nexan’s CEO. Nexans is developing new products and services for the shipbuilding market. to label them. the logistics center in Lyons (France) delivers pre-cut cables directly to Aker France. continuing to increase the performance of fire-safe HFFR cables. and non-toxic gas emission. Meanwhile. The flame-retardant cables prevent fire from propagating to the different parts of the ship. Of special concern for both commercial and naval vessels is onboard safety for the ship. thus enabling evacuation operations to continue.500 km of cables for the Queen Mary 2. Nexans furnishes 200 types of cable to some 15 shipyards in extremely short timeframes. For example. The principle is to custom cut cables to customer needs in real time. Nexans expertise in Halogen-Free Fire-Retardant (HFFR) cables is much appreciated by shipbuilders. Besides the broadness of its product range and plant resources. the fire-resistant cables continue to supply the vital functions of the ship’s safety systems. A number of direct links between Chinese technical services. First. Finally. quality control and purchasing and the various European sites assures a push-pull dynamic: Nexans creates awareness of what its oversea plants can do. mainly along four fronts.

thus eliminating the need for expensive retrofitting. emergencies and fire-monitoring. An innovative hybrid ship-to-shore cable which provides an alternative power supply. and guarantee non-stop surveillance. HFFR hybrid energy and data cables provide power to surveillance cameras and transmit vital information for security. and hydraulic systems. rudder. like motors.A wide range of products for the shipbuilding industry Nexans produces energy cables for propulsion (MV 3. sensor cables can be deployed in lengths up to 2. They have controlled impedance. To prevent fires onboard. while giving crew and passengers advanced video services. navigation and telecommunications information needed to run a large vessel efficiently. Medium-voltage power supply. It also manufactures Halogen-Free Fire-Resistant (HFFR) low-voltage energy cables ( 0. Nexans is marketing a temperature sensor cable system: LIST (Linear Sensing of Temperature). In cooperation with shipyards. measurement. control panel. Nexans has raised the voltage rate. armored or unarmored) HFFR sensor measurement and fieldbus cables control all essential industrial functions. They allow a command function to control camera movement. data transfer and telecommunications allows ships to cut their engines while in port thus reducing local pollution levels dramatically.6/6 kV up to 12/20 kV). but not conductor cross-section. to fiber. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 16 of 19 .6/1 kV) for onboard power distribution. Standard and thin-walled Halogen-Free Fire-Resistant (HFFR) instrumentation and control cables carry vital technical information for sensors. etc. This flat. Copper and/or fiber maritime Local Area Networks (supporting 10 Gigabit and beyond) provide capacity to handle the operational. and transmit an extremely precise digital signal. In addition. Not only can it be used in adverse environmental conditions. Nexans advocates Lloyds-approved Category 7 cable for future-proofing LANs. which increases power capacity. four-core cable with hybrid circuits contains an ASIC (Application-Specific Integrated Circuit) temperature sensor which can rapidly detect abnormal temperature increases which could be the source of fires on vessels so that fire-fighting equipment can be rapidly activated. To save installation time. Nexans has developed a Rapid Connection Box and flat cable for lighting in corridors. control cores and optical fibers are laid up in one rugged and easy-to-reel cable which protects the fibers. Nexans range includes all cable types (collective or individual shielding.000 meters.

strain. flexible. A new generation of telephone cables provides a complete telephone network on cruise ships. Cryoflex® transfer lines. Lloyds-approved Cat 7 avoids the need for expensive active equipment. Cable performance is being constantly improved.Thin-wall low-voltage cables (Flamex HFFR) provide efficient energy for equipment. an important safety feature. naval and oil & gas ships. Coaxial cable and Category 7 copper solutions deliver television and data services to every cabin to meet ship owners’ concerns with providing crew and passengers with quality onboard entertainment and Internet services. cabin wall outlets. 6. while lowering the cost of primary materials. based on shared databases and Computer Assisted Design (CAD) continues right through manufacturing and installation. This preferred suppliercustomer integration. not just a producer. Nexans supplies optical fiber to connect antennas to shipboard signal distribution networks. Innovation combined with advanced logistics has for many years been Nexans’ winning combination. Multimode optical fiber cables provide a downlink from the satellite dish to equipment for television transmissions. In conclusion. while assuring consistent quality and variable delivery logistics. etc. conveniences. Used largely for passenger ships. lighting. amplifiers. chemicals. etc. 7 assure further integration and longevity. For entertainment and communications. A wide range of cable accessories cover all energy and telecom needs: joints and terminations. maintenance and future upgrades. A special shielding guarantees high mechanical strength and resistance to vibration. Not only do these flexible tubes resist stress. etc. White Paper – Shipbuilding Industry Update Edition: September 2007 Page 17 of 19 . branching units. while Category 5e. this time-saving. vacuuminsulated corrugated tubes carry liquefied gases between floating production ships and shuttle tankers. often coordinating the work of 40-50 other suppliers. modular and pre-fitted cable is extremely easy to install. and corrosion. for a complete marine cables offer for commercial. public address systems. stress. sea salt. Nexans manages its supply chain completely. automatic doors. Nexans’ real force lies in combining manufacturing excellence with ongoing innovation. The service dimension Nexans operates as a full-service supplier. the outer sheath functions as an emergency insulation in the case of an inner tube puncture. but takes into account changing vessel types by sequencing deliveries in-order so that customers can receive cables in the right sequence for a specific vessel during production. All items are custom-fitted and preprocessed to facilitate installation. consisting of two or more concentric. Nexans also has the authority to qualify sub-suppliers on certain items not produced in-house. Not only does it deliver just-in-time to shipyards around the world.

Nexans supplies the Meyer shipyard in Germany with medium-voltage cables (6/10kV and 8. control and instrumentation cables for a semisubmersible drilling rig. Nexans continues to promote its innovative hybrid ship-to-shore cables in busy ports and superports around the world.IV. while the world<s largest FPSO is being built in Singapore. Kukdong is supplying Trans Oceans Inc. • • • • • • White Paper – Shipbuilding Industry Update Edition: September 2007 Page 18 of 19 . The destroyer will be delivered by the end of 2008 and deployed by the Korean Navy after sea tests are completed. Kukdgong is supplying MIL-C 24640 low-smoke. Nexans is continuing to supply cables to the biggest cruiseships being built today: the Freedom-cruise class being built by Aker yards. (USA) and the Keppel Fels shipyard in Singapore with $3. a specialized reel designer. With SAM Electronics in Hamburg (Germany) and Cavotec. Petroprod.000 TEU ship. Kukdong is also currently supplying NEK 606 for a series of jack-up rigs and other semi-submersible being built in Singapore for Patrojack. After the U.600-ton Aegis-class destroyer. For CNOPC (ConocoPhillips China.6/1kV cables for power distribution and 250 V cables for data transmission and telecommunication networks.35 million of NEK 606 Low Smoke Halogen Free (LSHF) power. Seven large platforms. named after the legendary king of the Chosun Dynasty. For the SEDCO 702 Project. and Japan. a joint venture with CNOOC) Nexans is supplying cable for the Bohai Bayu Phase II project in China. Petrorig and Seadrill. flame-resistant cable to Hyundai Heavy Industries who are building the world’s third. South Korea is the third country with this class of warship in its fleet. the Sejongdaewang-Ham. Design and building the destroyer took a mere two and a half years.7/15kV) for their latest cruiseship newbuildings: Celebrity. Disney and Aida. JackInvest. and Korea’s first 7. each servicing up to 14 subsea wellheads are being built at three shipyards in China. the Emma Maersk.S. to meet the growing demands for a cleaner and safer seaside environment. APPENDIX: Some recent success stories • Besides the 0. Nexans supplied Lindoe Shipyards in Demark with cabin cabling solutions for a 11.

Nexans GG45 connector allows 3 applications to be shared on one Category 7 cable.and cold-resistant cables for the Pitum-B (PA-B) and Lunskoye-A (LUN-A) platforms in Sakhalin Russia. Kukdong. Nexans also provided 2. This world first uses ISO/IEC cabling technology to provide 600 MHz broadband communication. Nexans Korean subsidiary. Nexans has a worldwide contract to deliver complete cables to Aker shipyards producing commercial vessels. Kukdong. thus reducing weight and the daily cost of running the ship. a luxury liner in which residents either rent or buy their cabins.• Nexans Korean subsidiary. Nexans is supplying cables for a FPSO (Floating Production Storage and Offloading) ship as part of the Russian Sakhalin oil pipeline project. Page 19 of 19 • • • • • • • • • White Paper – Shipbuilding Industry Update Edition: September 2007 . Nexans delivered the first cables to the Hudong shipyard in China for a series of LNGs being built for Shell. EMC had to be handled carefully to ensure performance of all systems. is providing the mud.O. For the World of ResidenSea®. is fully outfitting a 1. offshore supply vessels and tankers. Kukdong. and is also supplying advanced fireperformance cables (BS6387 CWZ) for FPSO ships being built by Hyundai Heavy Industries (Korea) for operation in BP’s Greater Plutonio Fields located in Angola’s deep-water Block 18 off West Africa. the G. Nexans Korean subsidiary.800 ton submarine being built by Hyundai Heavy Industries (Korea) according to strict VG-95218 German standards. China. Sars. delivered Type “P” cable according to IEEE Standard 1580 (100°C rating) and UL 1309 (110°C rating) for a Drill Rig in the Gulf of Mexico. being built by Samsung Heavy Industries (Korea). is supplying the cables for the offshore iceresistant platform “priralzlomnaya” in accordance with Russian technical specifications which demand exceptional performance in freezing conditions.500 km of cables for the Queen Mary 2. USA. For the French Navy’s new Mistral Class LHD (Landing Helicopter Dock/Projection and Command Ship) Nexans supplied all onboard cables. and is also supplying Type “P” cables for a platform in Bohai Bay. Nexans has designed a sensor cable used in tankers to measure crude oil level and pressure at high temperature during transport. Kukdong. For Danfoss Marine. cruise ships. Nexans Korean subsidiary. Nexans installed a shipboard broadband network which delivers everything for TV to videoconferencing. Nexans installed advanced Category 7 cable on the Norwegian research vessel.

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