From the Bridge. A New Shipyard Ready to Take On the World

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1 Published for the Employees of Marinette Marine Corporation Summer 2013 From the Bridge To most of us, the fourth of July evokes childhood memories of hot dogs on the grill, flags, picnics, parades and, of course, sparklers and fireworks. The holiday always fills me with pride in being an American and, as a former Naval officer, a deep sense of gratitude to all of those who have served to maintain our freedom since our founders Declaration of Independence some 237 years ago. A New Shipyard Ready to Take On the World The word freedom has special meaning to us at Marinette Marine as we build the Freedom Class Littoral Combat Ship. The responsibility of building ships that carry men and women into harm s way is one that all of us take seriously, and your commitment is reflected in your craftsmanship and the quality of your work. On Monday, May 20th, Marinette Marine Corporation held a ribbon cutting ceremony to commemorate the opening of our newest facility, and to mark the completion of Fincantieri s $73+ million investment in the shipyard. Chuck Goddard, MMC President and CEO, welcomed employees, Navy and Coast Guard representatives, government officials, and local community members to the event and stressed the importance of the shipyard upgrade. I stand here this morning representing one of the most efficient, technologically advanced shipyards in the world, and the amazing, exceptionally-skilled and passionate workforce that gives it life. MMC stands ready to meet the shipbuilding challenges of today and tomorrow, he said. Since 2009, MMC has doubled its indoor production space and increased its workforce by 60 percent, for a total of over 1400 employees. The shipyard, with purpose-designed facilities, has utilized superior facilities engineering and cuttingedge technology to maximize production efficiency and minimize energy consumption. During the ceremony, WPS and Focus on Energy presented MMC with a check to acknowledge the company s work towards energy efficiency. President of WPS, Chuck Cloninger, recognized the MMC effort. WPS is happy to recognize your energy saving initiatives. Not only does this help our environment, but it lowers the cost of shipbuilding for Marinette Marine, the US Navy, and the US taxpayer, he said. continued on page 2 The Grand Module Construction facility marks the completion of Fincantieri s $73.5 Million investment in our shipyard. Now, all of the pieces are in place. With expanded manufacturing facilities, computerized manufacturing equipment, and shipbuilding s finest workforce, MMC is uniquely positioned to meet our goal of becoming America s premier shipbuilder. Members of the MMC team continue to provide outstanding contributions to our community. The Giving Back column on Page 3 highlights a few of these efforts, and I applaud your participation in these worthwhile charitable and community events. We ve highlighted the Fincantieri investment and the goal of Transformation on Page 4. I urge you to embrace the changes going on in all areas as we strive to build ships quicker, safer, and with exceptional quality control. I hope that each of you and your families have a safe, relaxing, and rewarding Summer. Sincerely, Chuck H. Goddard President, CEO and GM

2 Ship Sponsor Janee Bonner Lays the Keel for the USS Little Rock Chuck Goddard, Welder: Jason Tordeur, Sponsor: Janee Bonner On June 28th, Marinette Marine Corporation laid the keel for the Littoral Combat ship LCS 9, the USS Little Rock. The ship s sponsor is Janee L. Bonner, the wife of Republican U.S. Rep. Jo Bonner of Mobile, Alabama. I m proud to be here today with some of the most talented shipbuilders in America, right here at this shipyard. This ship has been designed to meet changing threats and will provide unique access and dominance in coastal waters. I am honored to serve as her sponsor and to fully support the brave crews that will serve aboard her to defend our country for years to come, Bonner said. The Little Rock is the fourth Littoral Combat Ship currently under construction at MMC, with the USS Milwaukee scheduled to launch in the fall of 2013; USS Detroit scheduled to launch Spring 2014; USS Little Rock scheduled for Fall 2014; and USS Sioux City scheduled in Spring The accelerated production pace is a result of Fincantieri s $73.5 million dollar investment in MMC which included expanded manufacturing space and several new buildings, computercontrolled manufacturing equipment, and a 60% increase in the workforce. The goal is to transform the shipyard into an efficient ship-manufacturing facility and will include the transfer of technology, best practices, and engineering and manufacturing expertise of MMC parent Fincantieri. Significantly, the Fincantieri investment now allows us to build two LCS ships per year, while still retaining capacity for other ships, such as the USCG Offshore Patrol Cutter. Fincantieri Marine Group President, Francesco Valente, explained the longterm significance of the Fincantieri improvements: Just as this keel will support the eventual USS Little Rock, so too has Fincantieri, since its arrival here in 2009, completed laying the keel for this shipyard s success and Fincantieri Marine Group s American presence, he said. Here, Fincantieri Marine Group has laid a strong foundation upon which it has built and continues to build what we expect will be a most successful presence in America, a presence that reflects the strength and reach of its global parent company. Safety Check Shipbuilding can be hazardous work, and your safety is of primary importance. Please remember to wear proper Personal Protection Equipment (PPE) at all times and think Safety as you go about your job. Situational awareness is critical. And, as the summer months approach, remember safety as you handle household chores and lawn maintenance. Take On the World (continued) Chuck Goddard, MMC President, CEO and GM, outlined the benefits of the improvements. Today s event marks a major milestone for Marinette Marine and for the community. MMC s facility upgrades have allowed us to exceed the US Navy s requirement to deliver two LCS per year, while leaving additional capacity to pursue other programs, such as the USCG s Offshore Patrol Cutter, he said. Francesco Valente, President and CEO of Fincantieri Marine Group explained the significance of the investment. We have brought in equipment and processes, empowering the workers to take their skills to higher levels. This is proven by our efficiency in building the most complex ship in the history of this yard, the Littoral Combat Ship, which is the US Navy s priority shipbuilding program, he said. Ultimately, Fincantieri s successful investment and vision has become a reality because we came here not for the short-term financial investment, but for a long-term industrial partnership in and with America. Left to right: Chuck Cloninger - President, Wisconsin Public Service; Chuck Goddard; Francesco Valente; Represenative John Nygren - Wisconsin s 89th District; Senator Dave Hansen - Wisconsin s 30th District; Tamara Sondgeroth - Focus on Energy 2

3 An Investment in Our Future Transformation and the Fincantieri Investment The shipyard has seen numerous changes as the result of Fincantieri s more than $73 million dollar investment. Major renovations began in 2010 with the extension of Building 10. Since that time, we have erected: Little Known Facts about the 4th of July BLDG 30 Steel Fabrication and Panel Assembly, BLDG 31 Blast and Paint, BLDG 32 Module Cold Outfitting, BLDG 33 Grand Module Construction; and State-of-the-Art Ship Manufacturing Equipment has been Installed. The result is that covered production area has increased by over 50% to 556,000 sq ft on 55 acres along the Menominee River. Thirteen acres of new asphalt have been laid. Facility expansion has resulted in a more efficient product flow for each LCS ship constructed, and the travel distance of steel modules has been reduced by over eight miles. The workforce has been expanded by more than 60%. Francesco Valente, Fincantieri Marine Group President, explained what the investment will return. We are now moving building materials and machinery in one direction, in a seamless flow. There is no need to backtrack on the path from where a piece of steel rolls in by train and exits as a ship on launching day. This saves time and money and, perhaps most importantly, instills a culture of production efficiency that is reflected in everything we do here, he said. The new facilities will allow the manufacturing of two LCS ships at the same time while also leaving capacity to build a third LCS or other ships, such as the USCG Offshore Patrol Cutter. But there s more to producing a successful ship beyond buildings and dollars, as he further explained; These new facilities empower our workforce to take their skills to higher levels. The transfer of technology and know-how from Fincantieri will tranform MMC into a world-class ship manufacturing facility, he said. Shipyard Transformation is focused on a single goal: to make Marinette Marine the best shipyard in the United States. This means we have to design our ships with producibility in mind, we have to build them as safely and efficiently as possible, and we need to manage support functions so that all of our activities are coordinated. MMC is an organization of many parts and they all depend on each other for success. Teamwork is everything. Mr. Valente explains that MMC will remain focused on benefits to the client. We have every expectation that we can continue to lower the cost and improve the quality of the product regardless of eventual changes in ship requirements. We will continue to improve our processes to match the material improvements we have added. Everything from purchasing to production will remain focused on providing the best outcome for the shipyard, its employees and its customers. The word patriotism comes from the Latin word patria, which means homeland or fatherland. The first public Fourth of July event at the White House occurred in The Fourth of July was officially declared a national holiday in Before cars ruled the roadway, the Fourth of July was traditionally the most miserable day of the year for horses, tormented by all the noise and by the boys and girls who threw firecrackers at them. Both Thomas Jefferson and John Adams died on Independence Day, July 4, The 56 signers of the Declaration of Independence did not sign at the same time, nor did they sign on July 4, The official event occurred on August 2, 1776, when 50 men signed it. Eleven places have independence in their name. The most populous of these is Independence, Missouri, with 113,288 residents. Five places adopted the name freedom. Freedom, California, with 6,000 residents, has the largest population among these. On the July 4th weekend alone, more than 155 million hot dogs will be consumed. There is a 1 in 4 chance that one of the hot dogs or sausages you consume on July 4th originated in Iowa million cases of beer are sold on Independence Day around the country. 3

4 Giving Back YMCA Corporate Challenge: More than 90 MMC employees took part in the 2013 YMCA Corporate Challenge. The Challenge is between local companies who sponsor teams in the 16-Event competition. The adrenaline-pumping range of events include a Softball Homerun Derby, Scavenger Hunt, Volleyball, Dodgeball, a 2-Mile Relay, a 3-Point Basketball Contest, Obstacle Course, Bowling Golf, and Tug of War, as well as other events like Trivia and a Cake Decorating Competition. This is really a lot of fun, said Community Outreach Committee Member Josh Kellner. Not only is it an opportunity to interface with folks from all over the Marinette-Menominee area, but it s for a good cause, and it emphasizes physical fitness. Congratulations to the MMC team which took 5th Place in this year s competitions up from 8th Place in Proceeds from the Corporate Challenge benefit the Marinette-Menominee YMCA. Left to right: Ryan Wortner, Hannah Thyne, and Gary Ihde Dodgeball Dome League Volleyball: Kurt Bourbonnais reports that the MMC team is off to a fast start in Dome League Volleyball with the participation of team members from Engineering, Manufacturing and Program Management. The league consists of 40 teams divided into 4 divisions with games every week and a championship playoff at the end of the season. It s a mixed league, and rules state that at least three females are playing at all times. It s very competitive, Kurt said, you wouldn t believe how much we sweat. The games build team-spirit and it s a chance to get to know your teammates outside of the workplace. Kimberly Konop threads a needle in Minute to Win It March of Dimes: Megan Tharp, ARRV Administrative Assistant, reports that thanks to a contribution from MMC, her team beat their goal of collecting $1000 for the Marinette March for Babies Money raised benefits the March of Dimes and their research into birth defects due to premature births. Brad Ekin completes the final leg of the 2-mile Relay Left to right: Marissa Axtel, Kim Sindler, Kelsey Hagert, Nikki Myszak Cake Decorating Contest Left to right: Kim Behrendt, Stacy Gross, Jordan Kinney, Kassi Carr Bowling Tug of War 4

5 Show Stoppers The new double-sided FMG-MMC tradeshow booth. Tradeshows Bring Results Trade Shows are serious events for the MMC folks involved in Sales and Marketing. Business Development Coordinator, Bethany Skorik, explains, It s a chance to meet with customers in a relaxed, informal environment, showcase our strengths, assess customer needs, and to determine how Marinette Marine can meet them. Trade shows bring widespread brand recognition and the opportunity to network with customers. We have a great story to tell, Bethany said. MMC s rich history of building quality ships and our track record on U.S. Navy and U.S. Coast Guard contracts is impressive. Between air travel, set-up and breakdown, and working a booth for three days, participants are generally worn out and ready to go home after a show. Yet Michael Pinkham, Bay Shipbuilding Vice President, says that tradeshows can be invaluable in generating sales leads. We talk to prospective customers from all over the nation at these shows. We get to learn about customer s future new construction plans and their current repair and conversion needs; we get industry updates and interface with decision-makers. It s all very important in getting new business. MMC and FMG usually display at tradeshows targeted towards the United States Navy and the USCG, but also participate alongside affilliate Bay Shipbuilding Company (BSC) in commercial shows such as the International Work Boat Show in New Orleans. Shipyard Capabilities Film Now Posted Check out the new MMC Shipyard Capabilities film posted to the MMC website home page. The film details the Fincantieri investment in MMC facilities and equipment as well as MMC capabilities in building a wide range of vessels. 5

6 News From Affilliates Above and Left: VARD designed and built Offshore Support and Construction Vessel. Bay Shipbuilding Company (BSC) will deliver the first of two Polar Class OSVs for Tidewater in August and the second in November reports Todd Thayse, BSC Vice President and General Manager. Also in line for delivery later this year is the 30-Inch Cutterhead Dredge for Norfolk Dredging. Fincantieri s investment in BSC s equipment and facilities has resulted in a worldclass ship manufacturing facility, said Todd. We now have the capacity and workforce now to aggressively pursue new business opportunities around the globe. In that regard, Michael Pinkham, BSC Vice President of Sales and Marketing, recently accompanied customers of a large international offshore service company to Norway to inspect a VARD-designed and built Offshore Support and Construction vessel, the 370 foot OSCV-11. VARD is a Fincantieri company with ten shipbuilding facilities worldwide five in Norway, two in Romania, two in Brazil and one in Vietnam. The company is one of the main players in the segment of highly advanced offshore support vessels. ACE Marine: The Response Boat Medium, built by ACE Marine, is one of the stars of the Weather Channel s television reality series Coast Guard Florida. The series follows the men and women of the 7th Coast Guard District who are charged with keeping America s ports secure and waterways safe. The RB-M is an important tool in enforcing maritime laws and saving those in peril on the sea. The 7th USCG district spans 1.8 million square miles with more than 9,500 miles of shoreline and borders 34 nations or independent territories. The series airs on Wednesdays at 9 pm. BSC is marketing the VARD design together with its own shipbuilding expertise. Our client was very impressed at this proven and reliable ship that is currently working in waters around the globe, said Pinkham. It is ideally suited for deepwater Gulf of Mexico, and we ve had a lot of interest in from major marine operators. OSV construction is a perfect fit with BSC s expanded facilities, our computer-controlled manufacturing equipment, our first-class workforce, and our ability to deliver on time and within contracted costs, he said. 6