Nikita V. VOROSHILOV Head of Marketing Department, Vyborg Shipyard JSC. 1. Brief background of collaboration in the past:
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1 Nikita V. VOROSHILOV Head of Marketing Department, Vyborg Shipyard JSC Results of the collaboration of RF shipbuilding enterprises with shipbuilding companies, suppliers and subcontractors from Finland and prospects of cooperation development of Russian and Finnish companies through the example of Vyborg Shipyard 1. Brief background of collaboration in the past: Collaboration between "Vyborg Shipyard" (VSY) with Finnish partners has been begun since the times of USSR in the beginning of 1980th. It was directly connected with growing development of the North by the Soviet Union. In 1982 "Sudoimport" foreign trade association concluded a contract with Finnish company "Rauma-Repola" for the supply of two self-elevating floating drilling rigs - "Kolskaya" and "Sakhalinskaya" for "Arktikmorneftegazrazvedka" Production Association. VSY performed the supply of helidecks with support brackets for these SEFDRs. This was the first supply of Soviet products of this type to Finland. Construction and supply of helidecks for Finnish yards was continued. Besides, VSY supplied superstructure blocks with the helideck for nuclear-power ice-breakers "Taimyr" and "Vaigach", which were under construction in Finland. VSY constructed "Murmanskaya" and "Kurilskaya" SEFDRs as a general contractor in cooperation with "Rauma-Repola" Company. Support sections, as well as reducers, racks and other components of supporting-elevating devices were supplied from Finland, and "Aquamaster" company supplied anchor winches for SEFDRs. Assembly of pontoons and support pillars, produced by VSY, was also performed at the facilities of Rauma-Repola. Besides, in the further projects VSY usually rented Harry semi-submersible barge, owned by the Rauma-Repola. During the difficult years, preceding USSR breakup and during the first years after the formation of the Russian Federation, joint activity was suspended. However collaboration of Vyborg Shipyard with Finnish companies was continued in 1998, when a contract with a Shipyard in Turku on cruise liners was signed, and in 1999 similar contracts was concluded with a Shipyard in Helsinki. In same 1999 employees of Vyborg Shipyard for the first time obtained the working experience at Finnish yards when building the vessels according to the western standards. Hereinafter Vyborg Shipyard has continued to practice maximum experience exchange with foreign partners for achievement of the most effective work. In VSY built lower support foundations for semi-submersible drilling rig of Moss-CS-50 type. Due to the specifications of the construction a
2 number of brace assemblies for semi-submersible drilling rig might be produced only at the enterprises, having a special equipment. Finnish company «Rantaruukki Steel Oy» was chosen as a supplier of fashioned and profiled plates for a range of assemblies, as well as the braces. For the next order similar work was performed by the Finnish company «SteelDone Group». Collaboration with «SteelDone Group» was continued in 2008, when VSY ordered a production of riser protection constructions for the newest semi-submersible drilling rigs "Polyarnaya zvezda" and "Severnoe siyanie". 2. Examples of successful collaboration at the present time: In 2009 VSY JSC took participation into the works on the tender of Sovcomflot Company on the construction of icebreaking supply vessels for Arkutun Dagi field development. Yard specialists have been working out the question on cooperation for the issue of documentation with Finnish company Aker Arctic Technology Inc. The question on deepening and increasing of collaboration between Russia and Finland has achieved a new impulse after the foundation of Atctech Helsinki Shipyard Oy (AHS) on the basis of STX Helsinki Shipyard in the capital of Finland, produced by STX Finland Oy and United Shipbuilding Corporation. JV was registered on October 25, 2010, and specializes at the design and construction of complicated ice class vessels and development of shipbuilding sea technologies for the development of the Arctic. JV activity is focused at cooperation between Russian and Finnish sea clusters and satisfaction of the demands of the customers, who need renewal and strengthening of the Arctic fleet. First of all it is a construction of high technology vessels, as icebreakers, supply vessels, other specialized vessels, having a high ice class. Due to the fact, that shipbuilding industry of the Russian Federation for the years of standing idle has suffered serious losses of skills and qualification of the personnel, the process of transmittal of shipbuilding technology from Finnish party to Russian party was registered as a separate agreement through the education of United Shipbuilding Corporation personnel in the process of shipbuilding at AHS facilities. Agreement on formation of Joint Venture is an important factor of the level of traditional Russian-Finnish collaboration in sea industry. Finnish yards supplied more than 1500 vessels to Russia, and produced about 60% of all icebreakers in the world. Today the shipyard in Helsinki employs 450 persons of production personnel and has a set of orders, including the orders from United Shipbuilding Corporation by the Russian share holder Archtech Helsinki Shipyard Oy. Besides the yard actively takes part into existing and planned competitions on construction of the vessels of different types, which are announced both by the state of Russia and Russian companies. It is important to emphasize, that in a range of competitions AHS takes participation together with Vyborg Shipyard, which is a part of United Shipbuilding Corporation.
3 Both yards have rather positive experience of collaboration in the past, continued in the recent history. In particular, on Sovcomflot Company group and Exxon Neftegas Limited signed a long term agreement on supply of two icebreaking supply vessels, designed for the supporting of oil platforms at Arkutun Dagi sea oil field within the frames of Sakhalin-1 project. Following contracts on construction of these supply vessels are signed by Sovcomflot and AHS. Subcontractor of those AHS contracts is Vyborg Shipyard JSC, a contract with which has been signed in April 2011.As it was mentioned before, having long-term experience of supply of hull blocks for different vessels, constructed at the yards in Helsinki and Turku, including cruise passenger liners. For the first vessel supply was completed on March 5, 2012, for the second - June 22, Total weight of module blocks and components, produced by VSY, is 7334 t, among which the volume of complete modules is 14,0%. These supplies allow AHS to perform (timely and successfully) construction of the first vessel "Vitus Bering". The vessel was laid on January 19, 2012, Vyborg supplied 37 vessel blocks, and 5 units were ordered by AHS from other enterprises. Vessel was launched on , and on December 18, 2012, it was delivered to Sovcomflot, 10 months passed since the moment it was laid. The second vessel - "Aleksei Chirikov" was laid on July 3, All blocks, except one, were manufactured in Vyborg. The vessel was launched on November 23, 2012, delivery of the vessel to Sovcomflot JSC is expected in April It shall be noticed, that in the frame of experience exchange a part of VSY employees undertook an internship and training, taking participation into construction of these vessels directly at the Shipyard in Helsinki. Nowadays VSY JSC works on construction of the icebreaker series of 21900М project, which shall be completed in Two vessels of the series are being built by VSY on turnkey basis at its own production facilities. For the completion of the equipment yard is going to engage as suppliers several Finnish companies, which are one of the leaders in its branches of industry: Wartsila - for the supply of diesel generators, equipment of electric propulsion installation, as part of MDB, generators, transformers, frequency converters, control systems (section DG 6750 kw) Steerprop - for the supply of steerable propeller of tractor type with a propeller capacity 8700 kw Mareco Marine Systems for the supply of passenger outboard elevator and kit of fasteners for containers and general cargoes. Prismian for the supply of cable products Set of marine fittings is supposed to be ordered from SVK-Valves LTD.OY. Kotka.
4 Besides, the most probable subcontractor for the building of the third icebreaker project 21900М will be AHS company, for which this contract presupposes rather large scope of subcontract works, including production of part of the hull blocks, assembly of the hull from the blocks, supplied by VSY and produced by AHS, launch of the vessel, outfitting, commissioning and performance of trials together with VSY.VSY is responsible for the supply of major part of the equipment set, including complete set of key items, supply of nearly half of the hull blocks, as well as provision of the full set of project documentation. For the successful realization of these projects and enhancing of its production possibilities, VSY is building its own semi-submersible barge, which (in future) may be rented out for different purposes, particularly to Finnish companies. 3. Prospects of future cooperation. In 2010 a project "Strategy of the Russian Federation Arctic zone development and provision of national safety till 2020" was prepared, and in 2011 Program of Arctic shelf development was worked our. Nowadays Arctic is a great interest for Russia, as well as for range of other countries, including countries that cannot be defined as subarctic. Problems of Arctic become more practical - new possibilities appear for the usage of the region transportation routes, perspectives appear for the development of various Arctic natural resources. Cargo transportation by means of Northern Sea Route, intensity of which is rising very quickly, is very important. But we should remember, that the weakest point of these plans is a condition and size of icebreaking and Arctic transportation fleet, as well as Russian northern posts. Besides, oil and gas extraction sector is gradually shifting to the Arctic zone of Russia. Fleet, which is used in the Arctic nowadays, is rather obsolete and its largescale restoration is a relevant purpose. Russian shipbuilding industry, weakened during the period of restoration of the country after USSR breakup and lack of orders, can't satisfy (just yet) planning huge demand of special vessels, which shall be necessary soon for the country for oil and gas industry and provision of Arctic seafaring. Russian oil and gas industry needs gas carriers for liquefied natural gas and hydrocarbon gas, tankers, container carriers, as well as universal multipurpose vessels, drilling platforms etc. As it was mentioned above, nowadays AHS together with partners from Vyborg and Kaliningrad realizes a project on construction of icebreaking vessels. Soon they will work together with VSY on construction of one of the icebreakers with a capacity of 16 mw. New projects, which shall be performed in cooperation between our countries, are also worked through:
5 Nowadays Russian Arctic water areas are very poorly studied by the seismic survey. Sovcomflot company supposes to begin a construction of seismic survey vessels, as well as support vessels for these works. Development of these issues also engages VSY (issues on support vessel) and AHS (issues on seismic survey vessel). Construction of these vessels will provide Finnish companies with an opportunity to become suppliers of the equipment. Orders on construction of additional icebreaking supply vessels and several more icebreakers are expected. Increasing of gas extraction in the arctic regions and construction of plants for gas liquefaction presupposes construction of gas carriers with a certain cargo capacity. Construction of gas carriers with a capacity up to m3 for Baltic region can be performed by VSY, using its own resources, but it is preferably to have a technical support of such construction, as well as to solve the problem of supply of tanks for the storage of liquefied gas. Besides, current occupancy of the yard opens great prospects on cooperation with yard in Turku during the construction of vessels of this type, as it has great experience in similar work. A special place in such cooperation may be taken by the Russian pilot project in the sphere of Arctic fields development - beginning of South Tambey gas field development at Yamal peninsula - Yamal LNG project, including construction of plant for gas liquification, construction of high capacity gas carrier vessels and special ice breaking port fleet. Due to the severe weather conditions, LNG plant is to be modular built. VSY is a possible subcontractor on a range of module constructions and it plans to engage several Finnish specialized metal-processing companies for successful implementation of the project. In March 2013 project on construction of plant ongas liquefaction within the frames of Yamal LNG project obtained a favorable conclusion from RF State Expert Evaluation Department Conclusion: Vyborg Shipyard has long-term experience of collaboration with Finnish shipbuilding enterprises, as well as suppliers. Within this period the Shipyard has fully adopted to the requirements of western standards, its employees several times took participation into joint shipbuilding projects, both at its own facilities and at the facilities of the Finnish yards. Joint works on shipbuilding have been performed both for Russian and foreign customers. Extension of cooperation between VSY and Finnish yards, in our opinion, may contribute to the receipt of new orders for Finland and requirement for Russian participation may be provided by Vyborg. But, as it was mentioned before, during the times of USSR, Finnish yards supplied more than 1500 vessels to Russia, built 60% of all icebreakers in the world and almost all USSR icebreaking fleet. The reason of this is that the major soviet shipbuilding cluster was formed in the North of USSR, particularly, on the territory of the Ukraine, which was building basic volume of transportation and fishing fleet.
6 But nowadays these facilities don't belong to the Russian Federation any more and for the restoration of own shipbuilding industry, as well as in accordance with the large-scale plans of the country on the development of Russian arctic region, it is necessary to correct the practice of domestic order placement. Particularly, placement of almost all orders for ice class vessels, vessels of fishing industry and other of transportation vessels abroad shall not be allowed.the Russian Federation must be ready to develop cooperation with leading Finnish companies, but this cooperation shall bring to our country not complete vessels in exchange for payment of its construction, but experience and technical know how of Finnish partners, which allow our country to reduce technological inferiority in such a difficult and highly competitive sphere, as shipbuilding. Vyborg Shipyard, due to the experience, matured during the years of previous cooperation, as well as beneficial location and excellent production facilities, has an opportunity to become leading Russian enterprise in relation to cooperation of two countries in the sphere of development of shipbuilding, as well as associated industries.
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