Finpro's Maritime Business Day seminar, February 10th 2016

1. Shipbuilding Business Opportunities in
Russia
10.2.2016
Alexey Zak, Finpro

2. CONTENT
1. RUSSIAN SHIPBUILDING CLUSTER
2. ACTIVITES IN NORTH-WEST RUSSIA
3. FINLAND MARITIME AND OFFSHORE PROGRAM EVENTS IN RUSSIA IN THE FIRST
PART OF 2016
2/11/2016 © Finpro2

3. RUSSIAN SHIPBUILDING СIUSTER
KEY PLAYERS
• 170 shipyards and design companies
• Headcount: 160 000
SUBONTRACTORS AND SUPPLIERS
• 2000 companies
• Headcount: 540 000
TOTAL HEADCOUNT: 700 000
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4. MAIN DEMAND FROM DOMESTIC MARKET
KEY CUSTOMERS
• Navy
• Oil and Gas companies (mostly state owned)
• Russian shipping lines and agencies (biggest under government control)
MAIN VESSEL TYPES
• Military ships
• Icebreakers and other ice class vessels
• Offshore objects and service vessels
• Tankers, bulkers, tugs, cargo barges
ABOUT 100 – 140 CIVIL VESSELS AND 50 MILITARY SHIPS UNDER CONSTRUCTION
ANNUALLY
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5. Map of Russian shipbuilding and ship repair
companies and design bureaus
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6. What is Up in Russian shipbuilding
• St.Petersburg is the centre with 40 shipbuilding companies
• 80 % of shipbuilding activity of Russia is in St.Petersburg area
What has changed in Russia in 1 year?
• Oil price ↓
• USD vs. Rouble ↑
• Sanctions
Forecast of new shipbuilding 2016 -2020
• 70 new vessels to be ordered
• Sovcomflot to order 30 vessels. It is the biggest player
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7. IMPORT SUBSTITUTION
UP TO 80% OF SHIP EQUIMENT IS IMPORTED
• Target of the Russian government is to decrease share of imported equipment in
Russia
• Key instrument is localization of production in Russia
• Number of options: production owned by foreign company, contract assembling, joint
venture etc.
MEASURES FOR IMPORT SUBSTITUTION
Now
• Preferences in state companies purchasing
• Investment contracts
• USC negotiates localization in Russia with engines’ and propulsion systems’ producers
In the future
• New law to define Russian product (at least 20% localization)
• New general makers list for USC shipyards with preferences for local producers or
companies having localization plan
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8. The Biggest Projects in Russian Shipbuilding
• Zvezda Shipyard in Bolshoi Kamen floating dock is under construction. Zvezda Shipyard
(Far East) will build for Rosneft gas tankers and ice breakers
• Severnaya Verf Dry dock renovation
• Baltiyski Zavod ice breakers
• Vyborg shipyard icebreakers
• North Caspian LUKOIL project
• Arkticheskaya offshore platform
• Prirazlomnoe platform is in production
• Siberian River fleet is development
• Krasnoe Sormovo, Pella, Almaz, Nevski shipyards have new vessel orders
• Krylov Institute new ice pool is operating
• Astrakhan new shipyard
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9. Russia is modernizing 20 shipyards
• Company SSTC designs upgrade / modernization for 20 shipyards in Russia:
• Sevmash
• Zvyochdocka
• 35 CP3 Nerpa
• Severnaya Verft new dry dock 220x68 m, old dry dock 420 x 68 m upgrade. The yard
will build lots of vessels after modernization 2018 onwards: tankers, drillships,
platforms
• Admiralteiskie Verfi
• Yantar
• Zvezda, Rosneft is the investor
• Amurskij Sudostroiltelnij Zavod
• Proletarskij Zavod
• OSK target is 50 % local content in shipbuilding and 100 % in ship design
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10. OSK (United Shipbuilding Corporation)
• OSK is owned by Russian state.
• OSK is the largest shipbuilding corporation in Russia.
• 80 % of Russian shipyards and design companies are owned by OSK.
• OSK own 60 shipyards and design companies. Headcount 80.000.
• Almost all warships
• OSK is building 64 civil vessels at the moment
• OSK needs 458 new civil vessels by 2030, 185 vessels are related to Arctic offshore.
OSK builds:
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11. Admiralteyskie Shipyard

12. Admiralteyskie Shipyard
Vessel Types
• Currently builds diesel submarines
and 1 diesel icebreaker for Russian Navy
• submarine Rostov-on-Don of project
636.3 for Russia's Black Sea Fleet
• Scientific expedition vessels (photo)
• Search and rescue vessels
• Tankers, also arctic
• The biggest shipyard in St.Petersburg.
• Has 3 km long yard on Neva
• Headcount: 6000
• Has big own machine workshop
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13. Business Opportunities at Admiralteyskie
Shipyard
• Sources from Finland for projects related to:
• shipyard building, machinery and infrastructure upgrade, civil vessels
• marine engines & propulsion systems, lifts, kitchen & laundry room equipment and
electric systems
• Yard modernization projects offer opportunities for Finnish companies
• Invests constantly on yard modernization, currently constructs new production hall
• Is willing to visit new suppliers in Finland and Finns are welcome to offer when
concrete demand rises
• Tenders are visible on company’s web site
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14. Almaz Shipyard

15. Almaz
Vessel Types
• Currently builds serials of: Crane vessels, patrol vessels for Russian coast guard
• Good orderstock, yard is full until 2018
• Is not an OSK yard, import sanctions do not hit Almaz as hard as OSK yards
• Almaz has 2 similar sister shipyards in Russia, altogether there are 3 similar yards in
Russia
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16. Business Opportunities at Almaz Shipyard
• Air conditioning & ventilation systems assembed Turn key
• Fire extinguishing systems, oil recovery equipment
• Scaffolding systems, shipbuilding tools
• Has sourced Paroc, Rolls Royce, and pumps from Finland
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17. Baltiysky Zavod

18. Baltiysky Zavod
Vessel Types
Currently builds:
• 3 nuclear icebreakers
• 1 diesel icebreaker
• floating nuclear power plant
• Russia’s first floating nuclear power station “Akademik Lomonosov” for use in the
Arctic will be ready by October 2016
• Builds ice-classed vessels, large commercial cargo vessels and naval ships.
• Participated the Mistral project.
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19. Business Opportunities at Baltiysky Zavod
Shipyard
• Is allowed to source from Finland for projects related to shipyard building, machinery
and infrastructure upgrade
• Needs scaffolding, shipyard tools, propeller machining subcontracting, frequency
transformers
• For propulsion system manufacturing there is opportunity for Finnish sub
contractors
• Good orderstock, full
• Tenders are visible on company’s web site
• Builds ice breakers and needs equipment from Finland
• Has signficant in-house production and own machine workshop at yard
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20. Nevsky Shipyard

21. Nevsky Shipyard
Vessel Types
• Currently builds:
• Civil cargo and service ships (3-6 ships p.a.)
• Ship repair (20-30 ships p.a.) for Russian shipowners.
• Tug-boats
• Has built 2 oil tankers for Norwegian owners
• Dry cargo vessels. Has built 10 vessel serie
for bulk cargo, steel, grain, timber, coal
• Search and rescue vessels for fire fighting, oil spills
• Auxiliary vessels
• Supply vessels
• Self propelled floating restaurants “River Palace”
• River-sea passenger vessel for Ladoga, Baltic sea cruises
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22. Business Opportunities at Nevsky Shipyard
• Needs propulsion systems,
• Equipment for passenger & rescue vessels,
• Ship interior fitting,
• Marine engines,
• Oil spill recovery systems,
• Marine cables,
• Fire fighting systems
• Has experience in purchasing from Finland
• Builds passanger and rescue vessels = suitable for Finns
• Yards director is in charge for Nevskij & Okskaya Sudoverf -> access to 2 yards
• All purchases via Tenders = transparency
2/11/2016 © Finpro22

23. Pella Shipyard

24. Pella Shipyard
Vessel Types
• Currently builds:
• Tugboats and motorboats (25-30 small vessels per year).
• Pella is the leading company in Russian tug building market
• Tugs and pilot boats are equipped by the world leading manufacturers,
such as: Caterpillar, Cummins, Rolls-Royce, Desmi, Furuno.
• Today Pella’s structure includes 9 companies: machinery, shipbuilding (2 companies),
ship painting, energy, wiring, ship design, investments and fishing.
• Pella launched its second shipbuilding plant that was aimed to build vessels up to 6
meters depth. By 2015 new plant will make up to 8 vessels a year. By 2019 Pella plans
to reach sales of 280-300 Mill. EUR a year
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25. Severnaya Shipyard

26. Severnaya Shipyard
Vessel Types
• Current projects: several military ships and series of service ships for oil platform.
• Military and civil ships (cargo, ro-ro, floating docks, fish processing).
• Shipyard builds heavy long ships for navy
• supply ships for drilling platforms for Russian and foreign markets.
• Shipyard provides naval shiprepair for foreign countries.
• New Dry dock 220x68m and dry dock modernization 420x68ml
• After modernization, Severnaya will build significant amount of vessels: tankers, drill
vessels, platforms
• Headcount: over 1000
2/11/2016 © Finpro26

27. Shipbuilding and Ship
Repair Technology Center

28. Business Opportunities at Shipbuilding and
Ship Repair Technology Center
• Headcount: over 1000
• The biggest shipyard design company in Russia
• Center is planning and designing all new shipyards and modernization projects in
Russia. Center has currently 20 main Russian OSK shipyards’ modernization projects
on table
• Shipyard investment goods, working tools, laser cutting tools and know-how, welding
technology
• Zvezhda new shipyard project in Far East has space for new suppliers
• Open to Finnish suppliers
• Strong customers, designs all new and modenized shipyards in Russia.
• Has several export countries
2/11/2016 © Finpro28

29. Sredne-Nevsky
Shipbuilding Plant

30. Sredne-Nevsky Shipbuilding Plant Vessel
Types
• Currently builds:
• Military ships and civil ships of small deadweight.
• General purpose commercial vessels,
• Catamarans, off-shore support vessels.
• 3 mine sweepers for Russian Defence Ministry
• Multifunctional vessel for Coast Guard
• Rescue vessels
• Planning to build a catamaran for 150 passengers
• Tug boats
2/11/2016 © Finpro30

31. Business Opportunities at Sredne-Nevsky
Shipbuilding Plant
• Is planning to build a passenger vessel = sea bus. It is in project stage.
• Interior solutions from Finnish suppliers are interesting
• Ship engineering & design, f.ex. Fish factory/boat
• Oil spill recovery sytems
• Scaffolding
• Composite material
• Trolley for moving blocks
• Open to Finnish suppliers
• Strong customers: Rosatom, Ministry for Defence, Severstal
• All purchases via Tenders = transparency
2/11/2016 © Finpro31

32. Vyborg Shipyard

33. Vyborg Shipyard Vessel Types
• Currently has orders for 6 diesel icebreakers (3,5 years)
• Close cooperation with Arctech Helsinki in hull blocks production
• Builds oil platforms, ice breakers, special vessels, big LNG projects = suitable for Finns
• Shipyard is fully booked and outsources block production to Klaipeda
• Finland is Vyborgs nr 1 priority partner country Has many suppliers in Finland Wärtsilä,
Steerprop, Aliko…
2/11/2016 © Finpro33

34. Business Opportunities at Vyborg Shipyard
• Purchases via Tenders. Annual purchase plan on website
• Yards machine workshop seeks production partners
• Modernisation projects at Vyborg yard
• Heavy steel construction projects
• Opportunities: Piping & Iron works
• Castings f.ex anchor chain
• Fire fighting systems
• Alarm & evacuation systems
• Walls, panels
• Accommodation modules & interior fitting
• Bathrooms
• Paint
• Marine cables
• Lighting
• Doors & fire doors
• Working tools
• Deck machinery sub contractors
Photos: Aliko’s delivery and steel processing line at Vyborg yard
2/11/2016 © Finpro34

35. Arctic North Russia
Shipyards in Murmansk
and Severodvinsk

36. Nerpa Ship Repair Yard

37. Nerpa Ship Repair yard
Vessel Types
• The main ship repair yard for nuclear submarines of Russian Navy.
• Repair civil ships as well
• Part of “Zvyozdochka” shiprepair center.
• Located near Polyarny on the Kola Peninsula, it is one of five naval yards where
nuclear submarines are dismantled.
• Builds ships of 100 m length and weight up to 10 000 tons.
• Supplies berth parts to Norwegian ports.
2/11/2016 © Finpro37

38. Sevmash

39. Sevmash
Vessel Types
• Military and civil ships, oil platforms, pontoons.
• THE BIGGEST AND MOST POWERFUL SHIPYARD IN RUSSIA
• Headcount 50.000
• Ships with weight max 100.000 tons
• Sevmash has the largest sheltered docks in Russia, total 100 000 m2 +
• Extremely vast scope of activity
• the only shipyard in Russia whose
main focus is nuclear submarines for
Navy
Photo: Prirazlomnaya
Source: PortNews
2/11/2016 © Finpro39

40. Business Opportunities at Sevmash
• Needs to upgrade yard’s offshore know how
• Needs solutions for harsh conditions
• Fishing vessel under constriction
• Has several suppliers from Finland, for f.ex Prirazlomnaya platform
2/11/2016 © Finpro40

41. Zvyozdochka

42. Zvyozdochka
Vessel Types
• Propellers, propulsion systems NEW FOCUS
• Manufactures world’s strongest propellers for ice
breakers, cruisers & submarines for export &
Russian market incl. Finland fex to ABB
• Repair of nuclear submarines TRADITIONAL FOCUS
• Electric engines
• Repair & newbuilds
• Civil vessels
• Marine furniture
• Headcount: 15.000. 2nd largest yard in Russia
Photo: floating drilling rig Arkticheskaya
2/11/2016 © Finpro42

43. Business Opportunities at Zvyozdochka
For manufacturing of propulsion systems, propellers, screws and blades
• Propulsion manufacturing at Zvyozdochka is ↑
• Seek suppliers from Finland
• Wants Finnish industrial service, engine manufacturers & engineering companies to
establish in the new factory at yard in Russia
• Needs manufacturers and sub suppliers of electric engines & propulsion systems
• Has wide experience in purchasing from Finland, knows majority of Finnish suppliers
• Recently built a new assembly factory at yard
• Russia aims to operate on 10 oil platforms, this yard participates in their construction
2/11/2016 © Finpro43

44. EVENTS IN THE FIRST PART OF 2016
• Presentation of Cherepovets-city shipyard project, Helsinki, 1.3.2016
• Russian Shipbuilding Conference, St. Petersburg, 7-8.4.2016
• Trip to Vladivostok (Russian Far Eeast) and visit to Zvezda-shipyard,
28.5-5.6.2016
• Big Port of St. Petersburg-conference and visits to the ports: St.
Petersburg, Bronka, Kronstadt, Ust-Luga. 2-4.6.2016
2/11/2016 © Finpro44

45. FOR MORE INFORMATION:
Alexey Zak
Finpro St. Petersburg
Mob. +7 921 992 00 51
Alexey.zak@finpro.fi
www.finpro.fi
2/11/2016 © Finpro45

46. THANK YOU
FOR YOUR ATTENTION!
2/11/2016 © Finpro46