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TTS REVIEW
TTS GROUP ASA After reading this copy, pass it on to one of your colleagues.
Increased footprint in China
GUANGZHOU:
PAGE 4
Next generation cargo transportation
BERGEN:
PAGE 6
INNOVATIVE SOLUTIONS FOR THE CRUISE INDUSTRY
GOTHENBURG:
PAGE 8
TTS REVIEW IS A NEWSLETTER PUBLISHED WITH NEWS OF RECENT ACTIVITIES IN THE TTS GROUP
JUNE 2015
Recent News
NOVEMBER: New winches contractsTTS Marine GmbH in Bremen, Germany, signed two new contracts for delivery of anchor and mooring winches. The total order value of the contracts is approx. 52 MNOK.
The contracts are signed with respectively Hudong-Zhonghua Shipbuilding in China and Samsung Heavy Industries in Korea. The winches will be installed on a total of six LNG Carriers ordered by British ship-owners.
DECEMBER: New contract for successful offshore craneTTS NMF GmbH in Hamburg, Germany, secured a new contract for the delivery of one 800 tonne Leg-Encircling Crane. The crane is for a jack-up vessel, to be built for Belgium-based GeoSea at Uljanik shipyard in Croatia. The total contract value is approx. 120 MNOK.
Through this contract, TTS group has gained another foothold in the offshore market. The contract is the third in a row for a new, successful TTS design.
FEBRUARY: New contract for Ship Transfer System TTS Handling Systems AS in Drobak, Norway secured a new contract for the delivery of a 9000 tonne ship transfer system. The total contract value is 23 MNOK.
The contract is a repeat order from Baku Shipyard in Azerbaijan operated by Keppel Fels/Socar.
MARCH: New contract for car carriersTTS Marine AB in Gothenburg, Sweden, entered into a firm contract for delivery of cargo access equipment to in total three car carriers. The total order value for TTS is approx. 25 MNOK. The three Pure Car/Truck Carriers (PCTC) are under construction at a European shipyard.
APRIL: Breakthrough marine package equipment order signed in ChinaThe new 50/50 joint venture company TTS-SCM Marine and Offshore Machinery Co., Ltd. in China, entered into a strategically important contract for delivery of marine equipment packages, consisting of heavy lift cranes, hatch covers and winches to six new multipurpose heavy lift vessels. The package equipment approach brings the total order value up to approx. 270 MNOK for the six vessels.
The contract is signed with Shanghai Shipyard Co., Ltd., and is related to their order for six 28.000 DWT multipurpose heavy lift vessels that is going to be built as part of the ongoing fleet extension program of China Ocean Shipping Group Company (COSCO).
– The order represents a further belief in the strategic model TTS has chosen for the important Chinese market, says Björn Anderson, CEO of TTS Group ASA.
–Localization of critical business projects in combination with key account ship type packages ensures the successful roll-out plan for TTS growth strategy, Andersson ads.
Each ship is equipped with proven heavy lift cranes designs TTS NMF type DK II, two SWL 350t and one SWL 100t lifting capacity. COSCO already operates eight identically constructed vessels with cranes delivered by TTS. In addition, TTS will deliver hatch covers and winches from the 50/50 joint venture company in China, TTS Hua Hai.
APRIL: New Offshore and Deck crane contractsThe Business Unit Offshore entered into three new agreements for delivery of offshore and deck cranes with a total order value of approx. 105 MNOK.
The main contract is with Triyards Marine Services Pte Ltd. in Singapore for delivery of two active heavy compensated (AHC) subsea cranes for two vessels contracted by an Indian owner. The deliveries will take place 2nd and 3rd quarter 2016.
The two other contracts are for shipyards respectively in Argentina and Norway. The Argentinian yard has ordered three deck cranes for a product carrier. Delivery will be in approx. 10 months. For the Norwegian shipyard Kleven Verft TTS will deliver deck cranes for six offshore vessels to be built for Maersk.
MAY: New PCTC contract of MNOK120TTS Marine AB in Gothenburg, Sweden, entered into a contract for delivery of cargo access equipment to two PCTCs (Pure Car Truck Carriers). The total order value is approx. MNOK 120.
The PCTCs are under construction at a Korean Shipyard.
18Recent news
A word from theCEO, Björn Andersson
Increased footprint in China
Next generation transportation
Innovative solutions for the cruise industry
All, about quality
Korean transfer
Innovative partners
Streamlining the supplier base
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CONTENT
TTS REVIEW #18Published by TTS Group ASA in Bergen, Norway.
Editor in Chief: Miao Reinlund, VP Communications.
Editor:Trond Bogsnes
Texts:Øystein Rygg HaanæsEinar Sandal
Designed by Neolab by Knowit, Bergen.
Printed by Bodoni, Bergen
For subscriptions, please contact TTS Group by e-mail: [email protected]
TTS REVIEW #18 JUNE 20152
Releasing the energy
Dear reader, In think that in many ways, running a successful business is about seeing through your clients’ eyes. Doing so, I see a future where the marine industry’s chase for system integration and increased efficiency requires equipment providers like TTS to become more like innovative partners than pure suppliers.
Last year, we started on a strategic journey to turn the TTS Group around – to enable ourselves to become best in class when it comes to seeing through the clients’ eyes. The first phase has been mainly about providing ourselves the necessary tools for enduring profitable growth. In 2014, we realized cost reductions of NOK 150 mill. Another 100 mill will follow this year. We have successfully put in place a sourcing process on a corporate level with global value chains and global frame agreements. We are utilizing our size and joint strengths in a wholly different manner than we did a year ago. As a consequence of a newly designed Key Account process, a new market strategy is in place, focusing on complete handling solutions and access systems for key ship types. We have organized our business units accordingly.
To support these two building blocks, a technology and product standardisation process is turning every piece to identify additional value drivers. In addition, to ensure that all global processes are working, a new quality management process is implemented.
In other words, the most important building blocks are in place. Our batteries are charged and we are ready to release the energy. The crucial thing now, is to make sure that we channel the energy in the right direction.
Through a dedicated focus on product quality, efficient project execution, customer-oriented services and an innovative approach towards utilizing new technology, we aim to create value and increase efficiency for our customers.
We also seek closer cooperation with the major players within our target segments, offering not only complete handling and access solutions, but also to share our unique competence from all phases from concept development and design through manufacturing, installation, testing and training. We are broadening our product portfolio in order to increase efficiency both for shipyards during construction and for ship owners during the entire lifespan of their vessels.
Moreover, we are already working closely with clients in a number of segments to develop innovative solutions for greener shipping, to make turnaround time in ports shorter, to make cruise vessels meet the demands of modern passengers spot on and to facilitate safe recycling of vessels that have served their duty to the end. And these are just a few examples.
As CEO of the TTS Group, it is my responsibility to build an environment where all employees are highly engaged in their work and thrive on putting client interests at the forefront. A couple of weeks ago, we held our annual gathering for executives and managers from TTS entities all over the world, and what I saw, made me very optimistic about the group’s future as a strong, customer-focused unity.
I saw commitment to the strategy, I saw commercial attitude and – not least – I saw energy in abundance.
Enjoy your read,
Björn AnderssonCEO, TTS Group ASA
TTS REVIEW #18 JUNE 2015 3
In late April TTS NMF-SCM held a grand celebration in Guangzhou in China, with representatives from many countries. Not only was this celebration about the opening of a new company, and the newly earned large contract with Shanghai Shipyard Co. The celebration also symbolised new strategic directions for TTS Group, where an increased footprint in China is part of the efforts to turn the company around and to double its revenue within the year 2020.
– The centre of gravity for the heavy lift segment has moved to China over the past years, not only for TTS, but for the rest of the business as well, says Geir Storaas, Chairman of the Board at TTS NMF-SCM. But there is more to it than just following
the customers into this blooming market in the east. China has been important over the last 20 years, and TTS Group has invested lots of resources into establishing strategically long-term partners, and developing relationships with good mutual understanding of business cultures.
TIME TO BENEFIT– Now it is time to benefit from what is already achieved in China, says Geir Storaas, and to move towards a stronger vertical integration where the new 50/50 company is one major step in that direction.
– It is our belief that the new direction will prove profitable for all related parties, and enable us to both save costs and provide an even stronger ship-type package to the customers.
- Our presence in China is very much about utilizing the competitive edge that we know is available for TTS Group.
The Chinese company SCM, which is owned by the state-owned CSSC-group, has the benefit of a rather wide product portfolio, with several products that fit perfectly well into the business of TTS, and they have got access to great production facilities as well as close relationships with important customers like COSCO. What they needed was a larger base of international customers.
TTS Group, on the other hand, has the great access and relations to international that comes with the position as a global market leader. With this new joint venture, it will certainly benefit the mutual interests of both TTS and CSSC .
New company:
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Increased footprint in China
TTS REVIEW #18 JUNE 20154
PERFECTLY SUITEDThe new 50/50 company TTS SCM Marine & Offshore Machinery Co. Ltd. is perfectly suited for joining forces into the new approach with ship-type equipment packages. It fills the gap in TTS Group’s portfolio and fulfils the company’s presence in China, since the heavy lift business segment now has a formal joint venture partnership as well. Another TTS and CSSC company, TTS Hua Hai, has been in business since the late 90’s with their product portfolio of hatch covers, winches, and other products
– Combined, TTS Group is now in possession of a business platform that is structured for growth and will support the company’s other strategies into a more cost-efficient and market-oriented future, says Geir Storaas.
The new joint venture allows us to combine high-end technology together with the most completive position in the heavy lift market, he says.
– Even though other western companies seek away from partnerships with Chinese players, to establish businesses of their own, we find ourselves even more certain that our strategy is bringing us in the right direction. It is all about finding the right partners, he says, and gaining a “free” network by working together with our partners in our continuous search for our strategic goals.
– One person that has to be mentioned when talking about the right partnership, says Geir Storaas, is Madame He Pu, who has made an remarkable difference for TTS Groups operations in China. She has been with TTS
in several positions for many years now, previously as General Manager in TTS Hua Hai, and she now serves as the Director of the Board for both TTS Hua Hai and TTS NMF-SMC, where she has been the key person in building relations with business groups like CSSC and COSCO.
– It is my opinion that TTS’s increased footprint in China, with the new partnership, will play an important part in the strategic effort to continue the Group’s growth in China and to further strengthen our position as market leader. By means of strong ship-type focus with product package sales and better located service hubs, I am sure that the customers as well will find our services and products to be highly competitive, Geir Storaas finishes. n
TTS-SCM in China was officially declared opened by Björn Andersson, CEO, TTS Group and General Manager, mr. Deng Yuanlin.
Increased footprint in China
NEW 50/50COMPANY IN CHINAThe new 50/50 company TTS-SCM Marine and Offshore Machinery Co. Ltd., is jointly owned by TTS NMF GmbH and South China Marine Machinery Co. Ltd., owned by China State Shipbuilding Corporation (CSSC).
TTS-SCM will offer marine cranes from 100 to 800 tonnes, suited for a range of heavy lifts and project cargo, as well as lattice boom cranes up to 1500 tonnes for various offshore work boats and supply vessels. The company will carry out development, design, manufacturing and assembly of cranes.
The company is located in Guangzhou, the capital and the largest city of the Guangdong province in South China and an important trade and industry hub.
TTS REVIEW #18 JUNE 2015 5
In April this year, when MV Kvitbjørn entered into a shipyard in Bergen, Norway for its final adjustments, the dream from four years ago had become a reality. The journey from the shipyard in Jiangsu, China to Norway is written in the books as the longest sea journey in the world to be run entirely on LNG gas.
With two new LNG-driven vessels Nor Lines is setting a new green standard at sea.Kvitbjørn and its upcoming sister ship Kvitnos is referred to as the world’s perhaps most environmentally friendly cargo ship. Together with an innovative hull construction and an integrated package of cargo handling solutions, MV Kvitbjørn has been richly awarded with prizes like Next Generation Ship Award and Green Ship Technology.
ASKED TTS FOR INPUTSFew years ago, when Nor Lines first started the process of identifying the basic principles about next-generation solutions for sea cargo transportation, they turned to Jan-
Magnar Grøtte in TTS Group, asking for input on how the best solutions would be with regards to the construction of the cargo handling equipment and how to gain logistics benefits from the construction.
– The basic task was simple and straight to the point, the Head of R&D in TTS say; - How do we move cargo the fastest way in and out of the ship. Only this time we were asked to be a problem solver, with clean sheets and nothing but challenges and solutions.
– By partnering up at this initial stage of the process, TTS Group is able to create more robust solutions with the benefit of not only
next generation transportationTTS partner up with Nor Lines in creating the
TTS REVIEW #18 JUNE 20156
their functions, but also efficient service and adjustments through their entire life cycle. That’s the kind of process we like, says Grøtte.
A COMPLETE PACKAGE– Everything that rolls on and off that boat is handled with TTS Equipment, and it is all constructed as an integrated system, Jan-Magnar Grøtte says, - with common hydraulics and just one service partner.
The solution will stand the test of time, he says. The 100-ton ro-ro solution at the back is dimensioned big enough for Nor Lines’ new strategic port Cuxhaven, enabling them to
provide ro-ro services from the European mainland for the first time. The 80-ton crane has a longer knuckle arm than usual in order to also serve the ports without
land-based cranes, whereas the specially made trailer lift can lift up and stow 35 trailers on the upper deck, with the lift working as a waterproof hatch when not in use.
– It is now part of TTS Group’s new strategic direction to provide package sales by entering the process as soon as possible, Jan-Magnar Grøtte concludes. - To be the problem solver, so to speak. - Despite being started before the revised strategy, the work that has been done on MV Kvitbjørn and the upcoming sister ship MV Kvitnos is a very good example of this way of working. n
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natural gas-powered cargo ships well
equipped with TTS solutions.
TTS REVIEW #18 JUNE 2015 7
When Star Cruises’ Genting World is launched next fall, she will be the first large cruise vessel with all-electric shell doors. - The solutions are developed and delivered by TTS and can be taken as proof of our innovative approach to the cruise industry, says Björn Rosén, Vice President Sales and Projects at TTS Marine AB.
The leading Asia-Pacific cruise line Star Cruises has chosen TTS to provide access solutions for two mega cruise ships under construction at the German shipyard Meyer Werft in Papenburg. TTS will deliver all-electric shell doors, complete electric drive systems, cargo elevators, loading platforms and tender embarkation platforms with electrically operated aluminium stairs for both Genting World and her sister ship to be launched in 2017.
– We are happy to respond to the industry’s commitment to greener shipping, says
Rosén, who describes a number of advantages with TTS’ electric solutions:
– They are more energy-efficient than hydraulic ones and contribute to lower emissions. They also require less maintenance and occupy less space compared to systems driven by central hydraulic power units. Since installing cables is easier than fitting pipes, electric systems also make construction easier for the shipyards.
The electric solutions developed by TTS have a robust mechanical design and are easy to install, ensuring easy service access and high redundancy. All installations will be fully integrated with a data bus system in a user-friendly interface and the solutions are even designed to facilitate remote monitoring and fault-finding via satellite or mobile broadband.
EXPANDING THE SCOPETTS has a strong record of deliveries to the cruise industry and is currently expanding its scope to be able to offer a wider range of both base products and innovative solutions for the cruise industry.
– We have unique competence in designing access equipment for use both on board and onshore, contributing to swift and safe handling of passengers, provisions and luggage. Our aim is to minimize turnaround time in ports for our clients, and we have developed extremely flexible and efficient interfaces between ship and terminal, says Rosén.
– Some port facilities are tailored for specific ship designs, while others target a wider range of ships and need solutions that are more sophisticated. No matter the case, we offer optimal access systems.In its current product development for passenger terminals, TTS emphasizes
Making innovative solutions for the cruise industry
Star Cruises has chosen TTS to provide access solutions for two mega cruise ships under construction.
TTS REVIEW #18 JUNE 20158
areas such as increased efficiency and safety, reliability, passenger comfort, better solutions for disabled persons and innovative control of gangway positioning relative to the ship.
In close cooperation with leading shipyards and cruise lines, TTS is also looking into a number of innovations to match the increasing demands of modern cruise passengers.
– Among other things, we are exploring the possibilities to transfer leisure features from the yacht business to the cruise industry. We are also considering new ways of utilizing tender platforms and innovative means to increase the available sundeck area – a theme I guess will be of great interest to any cruise operator, says Rosén.
EARLY INVOLVEMENT A KEY TO SUCCESSBased on TTS’ 30 years of close cooperation with major players within the
car carrier industry and other specialized segments, Rosén is confident that the earlier TTS is involved in a newbuilding project, the higher the value created for the customers.
– By involving us already in the concept development and design phases, we can contribute to optimal system integration and the best possible flow of passengers and cargo. Early involvement also ensures that the operators will benefit from the latest technological developments contributing to the supreme passenger experience that every cruise line aims to offer.
– We have decades of experience from pulling off complex projects and our strong commitment during each step, from design, manufacturing and installation through training, start-up and maintenance guarantees high quality deliveries and successful end results, Rosén promises.
GROWING ASIAN MARKETAmerica and Europa have been the traditional heartland of the cruise industry, but currently Asia stands out as the fastest growing market for cruise tourism. Tonnage is increasingly being moved eastwards, new and larger cruise ships are ordered for the Asian market and a number of ship-owners consider Asian shipyards for new projects.
– To us, this implies new opportunities as we can build on our already strong position in the Chinese and South Korean markets. Whether vessels are built in Asia or Europe, we can offer unique experience from complex projects, a flexible approach and a wide range of reliable products based on well-proven technology, says Rosén. n
Making innovative solutions for the cruise industry
Luxury cruise ship Mein Schiff 4 carries state-of-the-art access solutions from TTS. The deliveries included shell doors, platforms, covers, elevators and telescopic aluminium gangways tailored to save space on board and make passenger access as swift as possible.
TTS REVIEW #18 JUNE 2015 9
- Competition in our line of business gets fiercer every day, and we simply cannot afford to compromise on quality, says Birgitta Sjöberg, who is in charge of the continuous quality improvement work at TTS.
Sjöberg, a Swede with decades of experience from quality management within the marine industry, is Vice President Quality Management at Gothenburg-based TTS Marine AB. She also heads the TTS Group’s Quality Management Group (QMG), consisting of quality managers from TTS’ different business units.
– Our main task is to make sure that all the different entities of the group perform to the same, high quality standards. QMG is a way to establish, implement and enforce a common quality level across TTS. We want the same high standards to permeate all internal processes and all deliveries whether
they come from a company in Sweden, China, Germany or Norway, Sjöberg says.
THREE MAIN PRIORITIESThe current top priorities of QMG are supplier validation and development, non-conformity reports and ISO certification.
– We are working closely with TTS’ own Strategic Sourcing Group to find a common practice for how we work with suppliers and subcontractors. In order to reduce TTS’ quality cost, it is important that our partners also understand and share our quality demands. The objective is to map potential suppliers and present them with our requirement specifications. Selected suppliers can count on TTS’ support in their own quality improvement work, says Sjöberg.
As TTS increasingly operates in low cost countries, Sjöberg admits that there is a
certain need for assistance. The relatively strict conformity and reporting requirements that European companies have adhered to for a long time, can still come across as new and rather unfamiliar matter in other parts of the world.
– As China gets more and more important to TTS, we pay particular attention to the development of our quality management and control functions there, Sjöberg adds.
SETTING THE STANDARDCommon non-conformity reports is another prioritized area for Sjöberg. It is a clear aim that by next year, all TTS entities shall report non-conformities in the same way.
– This is important not because we need more figures, but because we need comparable figures so that we can carry out overarching analysis of our business and identify areas of improvement. Better
All, about quality
Birgitta Sjöberg in briefn Current Vice President Quality
Management at TTS Marine AB
n Heads TTS Group’s Quality Management Group
n Educated at Chalmers University of Technology, Gothenburg, Sweden
n Decades of experience form the marine industry
n Part of the TTS-system since 1995
TTS REVIEW #18 JUNE 201510
non-conformity reports will simply give us a better basis both for improving our own work processes and for choosing the right suppliers, which in the end will also benefit our customers.
The third hot topic for Sjöberg and QMG is ISO certification. The ISO standards provide guidance and tools for companies who want to ensure that their products and services consistently meet customer’s requirements, and that quality is consistently improved. Being ISO certified documents that TTS follows certain criteria for quality management.
– Currently, we are working towards ISO 9001 certification of all TTS entities as a minimum. In a longer term, it is natural that we commit ourselves to bringing the entire group up to an even higher quality level.
20 YEARS OF QUALITY MANAGEMENTA Quality Management Group at a corporate level came into being in April 2014, as part of the ongoing process of moulding different TTS entities into one coherent corporation. According to Björn Andersson, CEO of the TTS Group, Sjöberg stood out as the obvious
candidate to head the task force.Sjöberg is educated at Chalmers University of Technology in Gothenburg, Sweden, reckoned one of the leading technical universities of the Nordic countries. She has decades of experience from the marine industry and has been working with quality management for the last 20 years. She has been part of the TTS-system since 1995, when she started working for Kvaerner Ships Equipment, which later became TTS Marine AB.
– The intention was that I should work mainly with planning, but at the time, the company experienced what I would call growing pains and had a few quality issues, she recalls.Sjöberg was offered the post as head of quality management after a few months, and even though she refuses to take much credit for it herself, the quality costs of the company decreased substantially in the following period.
For some years, Sjöberg split her attention between quality management and planning, but since the early 2000s, it has been quality management all along for the experienced Swede.
Now, she is truly dedicated to creating a solid framework for a never-ending quality improvement process within TTS.
THE POLISH CONNECTIONIn 1995, Sjöberg was also assigned the task of establishing a quality control and design unit in Poland. She was in charge of the Swedish-Polish operations until 2004, and the establishment in Poland is today known as TTS Poland sp.zo.o.
Now, she has reconnected with her former colleagues in Gdansk as TTS Poland is next in line for ISO 9001 certification.
– As they provide services such as design, commissioning and installation for several TTS entities, ISO certification of our company in Poland will have positive ripple effects for the group as such and give our customers an extra assurance that we conduct all projects in strict adherence with industry standards, Sjöberg says. n
All TTS entities shall perform to the same, high quality
standards.
TTS REVIEW #18 JUNE 2015 11
TTS has a long history of designing and supplying equipment for navies worldwide, but has never committed itself to a coordinated offensive towards the naval market. That is about to change.
– The naval segment is interesting to TTS for a number of reasons, not least because it is less vulnerable to cyclical movements than commercial shipping is. We have launched a group initiative to gauge the interest and have received positive feedback. The naval market could very well become an important future business segment for TTS. We have a wide range of products suited for naval customers opting for reliable and innovative solutions based on well-proven technology, says Nils-Peter Aulisio, Senior Sales Manager for Naval Projects.
Docking and landing ships, logistics support ships and other auxiliary vessels will be TTS’
primary target, but Aulisio underlines that a number of TTS’ core products fits in almost any naval vessel, from offshore patrol vessels to larger combat ships like frigates and destroyers.
– We deliver ramps of all types, side loading systems, cranes, deck machinery, hatch covers, internal doors and lifts and other equipment as well.
Equally important to the wide-ranging product mix, is TTS’ experience of contributing in all phases of long-lasting projects, from design and concept development to upgrades and conversions.
– There is also little need for off-the-shelf products in the naval business; most solutions have to be tailor-made and designed for very specific purposes. I believe that our experience from turnkey projects within commercial shipping will be of great
value also to naval customers, says Aulisio, who sums up TTS’ competitive edge in the terms flexibility, reliability and proven ability to handle complex projects.
Naval vessels are often constructed with a 30-35 year service life requirement and may deploy globally on long lasting missions. To meet these requirements, Integrated Logistics Support (ILS), needs to be designed to meet the strictest requirements for equipment reliability, supportability and maintainability. TTS will now have the capability to meet these requirements and support the vessel through it’s ever expanding global service network.
– Navies and Coast Guards, just like commercial vessels, now expect suppliers to be able to meet their worldwide operational demands 24/7, which TTS can support through Fleet Support agreements tailored to their specific needs, says Aulisio. n
Targeting the naval market
12 TTS REVIEW #18 JUNE 201512
Transferring parts of the deck equipment operations from Germany to South Korea has increased TTS’ competitiveness. - The competition in the segment is fierce, but we see a solid growth potential in the rising market for LNG carriers and jumbo containers, says Edgar Bethmann, Executive Vice President for TTS’ Container, Bulk & Tank business unit.
– In order to cut costs and get closer to the important Korean market for merchant vessels, we started transfer of essential logistics and supply chain functions from Bremen to Busan a year ago. The process is proceeding as scheduled, and even though the market for deck equipment is challenging at the moment, we already see a number of gains, says Bethmann.
With operations in Busan, TTS’ deck equipment business benefits from group sourcing in Asia and a tighter vertical integration throughout the corporation.
– We purchase steel material from TTS Marine Equipment in Dalian, China, which produce major steel components for winches being delivered to Korea. The fact that we can lean on our own preassembly force gives us a competitive edge and contributes to cost savings.
– The transfer also makes it easier to focus wholeheartedly on research and product development in Germany, where we have kept our Centre of Excellence.
Manufacturing, assembly and testing is taken care of in Asia, says Bethmann.
TURNING MARKET IN KOREA2015 has so far been a rough ride for all providers of deck equipment and Korean yards experience that new orders for simpler merchant vessels are increasingly placed in China. The falling offshore market has also hit Korean yards with full strength.
– Due to this development, we see a clear change in the Korean market, and I believe that it is a change to our advantage. Korean yards are increasingly turning towards LNG carriers, tankers, PCTCs and jumbo container ships; all vessel types where TTS can offer reliable and well-proven solutions as well as decades of experience from execution of complex projects.
– Unlike our local Korean competitors, we can also offer a comprehensive, global service network, Bethmann underlines.He considers the LNG market to be of particular interest to TTS, as the business unit has longstanding relations to many of the key players in the Asian market. According to Bethmann, it also works to TTS’ advantage that the company is the leading provider of so-called self-contained winches:
– These are winches where the power unit is integrated with the winch and not driven by an external, hydraulic system. As LNG carriers most often don’t birth for loading, they need the kind of self-running and reliable anchor equipment that TTS offers.
The market for jumbo container ships is also on the rise, with a consensus among the analysts that the outlook for the coming two-year period is positive.
– Most of these vessels, ranging from 18,000 to 24,000 tons, are built at Korean yards. We also see positive signs regarding the market for smaller container vessels, which are predominantly built in China and constitute an important market for our hatch covers and winches.
BIASED MARKETBethmann describes the current market in Korea as biased. As the number of local providers of deck equipment has grown, prices on certain products have fallen to a level where some simply sell at a loss to keep their service business going. On the other hand, the growing demand for more specialized vessels results in increased interest for tailor-made solutions that are perhaps economically more viable in a lifecycle perspective.
– We have to work both to benefit shipyards in their search for short-term gains and to help the ship-owner get the optimal solutions in the longer term. It’s a bit like riding two horses at the same time, but given the current market situation, this has become a necessity. No matter the type of the project, we focus one hundred percent on high quality deliveries and maximum customer satisfaction. n
Ready to reap the fruits of the Korean transfer
TTS REVIEW #18 JUNE 2015 13
– For the offshore business it could cause challenges if ordering standard products with the intention to modify them into function later, says Arve Tjønn Rinde, EVP BU Offshore of TTS Group. Rather than being purely a supplier, TTS would like to be an innovative partner that utilizes our long-earned experience and wide range of expertise to find the best possible solutions together with the customer.
– Standardization has recently become the newest buzzword in the offshore business, says Rinde and continues: - In my opinion it is very important that this process-oriented term does not mean choosing standard products off the shelf. It should be a mutual process where solving the basic tasks and problems for the customer is the main focus, where the common understanding of the challenges paves the way for long-lasting, robust solutions.
SIMULTANEOUS SHARING OF KNOWLEDGE– Innovative product development at its basic principles is very easy, he says. There is the problem owner and the solutions provider, who each in their own way has
an extensive understanding on half of the situation. When trying to adjust the standard products afterwards, you may end up with a sequenced process, where the problem owner tries to identify the solutions first, and then later the solution expert tries to understand the problem in order to adjust the products.
– As part of our strategy and competitive edge, TTS Group always wants to partner up at the initial stage of the process.
An example of this way of thinking could be seen recently, when Statoil ordered a new micro-sized Icarus crane for Snorre B. Arve Tjønn Rinde explains that during the initial case studies, TTS Group identified that the complex operations together with other customer requirements could not be met by a standard type of crane. - It called for a brand new crane design, where the advanced functionality could become an integrated part of the crane construction right from the beginning.
– Basically it was about adapting the AHC and CT tools from our larger cranes, and try
to find a way to integrate them into a micro-size crane body.
SMALLEST SIZED YET WITH AHCWith a planned usages span of bringing subsea components like Xmas Trees and Subsea Baskets down to the seabed around the platform, both precision and safety was the key words from the customer. In order to achieve the needed precision, the crane was fitted with the latest generation adaptive Active Heave Compensation, where countermoves can be calculated in just microseconds.
– In fact it is our smallest sized crane yet, with Active Heave Compensation, says Arve Tjønn Rinde.
– As for the tiny amount of space around the crane, the AHC system were built together with the crane body, and the advanced control functions were integrated all the way around the crane body. With the purpose of installing HPC caps the crane would need a more precise pull function than the regular one. By equipping it with the Constant Tension function, the speed
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deviation is reduced from the normal 10% down to 1% off the set speed values.
– This crane is tailor-made to meet customer needs up to the highest level, Rinde explains. -It proves that TTS Group has the knowledge and the technology to be very competitive not only in the Heavy Lift segment, but also with the specialized needs of the offshore area.
TURNKEY CRANES, ALL THE WAY We can deliver turnkey cranes all the way from initial project drawings to the junction box, without any use of intermediates. For the customer this means having one service partner that knows both their processes and tasks. Together with a tailor-made product, this will constitute the least expensive solution in the long run.
TTS Group hopes for common strategic gains with long-lasting relationships with customers like Statoil, Arve Tjønn Rinde says. This latest delivery for Snorre B can easily become a standard from which future cranes will be copied in larger scale numbers. n
To cut costs and utilize its strengths as a group, TTS is consolidating its supplier base and entering global frame agreements for key input factors. - A long-term goal is to develop tight relationships where today’s suppliers become tomorrow’s developmental partners for TTS, says Antti Palonheimo.
The Finn, who has more than thirty years’ experience from the marine industry, was recently appointed Corporate Vice President for Strategic Sourcing & Technology (SSG), which has been in action since 2014.
SSG’s aims are cost reductions of NOK 150 mill over a two-year period, a strong reduction of the number of suppliers in TTS’ global supplier base and global agreements for core commodities within important product categories.
As an example, Palonheimo points to hydraulic components, where TTS’ different subsidiaries in sum have used a three-digit number of suppliers.
– Now, we are well underway with a process of consolidating our supplier base. Tighter relationships with fewer suppliers is not only an advantage to us, but also to our customers. We are looking for suppliers that not only offer the most beneficial
prices, but also have the most trustworthy long-term plans for cost reductions, quality improvement and product development.
GLOBAL AGREEMENTS IN PLACEAfter prioritizing basal input factors like steel and mechanics, SSG has naturally extended its scope towards suppliers of hydraulic and electrical components.
– We have landed global frame agreements with providers of hydraulic cylinders and drives and we are currently working on gearboxes, which is another important hydraulic component. We wire into the most important product categories first and work our way up from there. All these deals imply cost savings for the group and – not least – they simplify our logistics, Palonheimo explains.
In addition to reducing the number of suppliers, SSG strives for further standardization of key components and a reduction of the variety of purchased commodities.
– Reducing the product diversity provides both our customers and us with the benefit of reduced lead-time and reduced future service costs. Moreover, with more lean and cost-efficient processes at all ends, we can spend more time on innovations and product development, says Palonheimo. n
Streamlining the supplier base
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Antti Palonheimo
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TTS GROUP ASA
TTS Group ASAFolke Bernadottes vei 38
P.O. Box 3577 FyllingsdalenNO-5845 Bergen, Norway
Phone +47 55 94 74 00Fax +47 55 94 74 01
www.ttsgroup.com
Companies in the TTS Group
BRAZILTTS Service Brasil Ltda.Avenida Rio Branco 31Salas 1408 – 1411CentroRio de Janeiro, RJTel: + 55 21 [email protected]
FINLANDTTS Liftec OySorkkalantie 39433980 PirkkalaTel: +358 3 3140 1400Fax: +358 3 3140 [email protected]
CHINATTS Hua Hai ShipsEquipment Co Ltd18th floor,3255 Zhou Jia Zui RoadCN-200093 ShanghaiTel: +86 21 6539 8257Fax: +86 21 6539 [email protected]
TTS Bohai Machinery(Dalian) Co LtdBeihai Industrial ParkSujia, Dalianwan StreetGanjingzi DistrictCN-DalianTel: +86 411 8711 2670Fax: +86 411 8711 [email protected]
TTS Marine(Shanghai) Co LtdNo.389 GaoDong No 2 RdGaoDong Industrial ParkPudongCN-Shanghai 200137Tel: +86 21 5848 5300Fax: +86 21 5848 [email protected]
TTS Marine Equipment(Dalian) Co LtdTuchengzi CunDalianwan StreetGanjingzi DistrictCN-Dalian 116034Tel: +86 411 8711 9663Fax: +86 411 8711 [email protected]
TTS-SCM Marine and Offshore Machinery Co., LtdSCM factory, Long Xue Ave,Nan Sha DistrictGuang Zhou, ChinaTel: +86 2039 08 0616Fax:- +86 2039 08 0689
GERMANYTTS Marine GmbHAn der Reeperbahn 6DE-28217 Bremen. P.O. Box 10 40 80 DE-28040 Bremen, GermanyTel + 49 421 52008-0Fax: + 49 421 [email protected]
TTS NMF GmbHNeuenfelder Fährdeich 120DE-21129 HamburgTel: +49 40 55 43 61 500Fax: +49 40 55 43 61 [email protected]
ITALYTTS Marine s.r.l.Ponte ColomboIT-16126 GenovaTel: +39 010 24 81 205Fax: +39 010 25 43 [email protected]
GREECETTS Greece LtdAkti Miaouli 8118538 PiraeusTel: +30 210 42 94 480Fax: +30 210 42 93 [email protected]
KOREATTS Marine Korea Co., Ltd.#1664-10 Songjeong-Dong Gangseo-Gu, Busan 618-819 KoreaTel: +82 51 831 8401 Fax: +82 51 979 [email protected]
Business Unit CBT Team:#1405, U-dong, Haeundae-gu, Busan, Korea(612-741)Tel: +82 51 979 5644
Service department:RM 1514, Marine Park, Marine City 2-ro 2, Haeundae-gu, Busan, Korea(612-824)Tel: +82 51 979 5631 [email protected]
NORWAYTTS Group ASAFolke Bernadottes vei 38Postboks 3577 FyllingsdalenNO-5845 BergenTel: +47 55 94 74 00Fax: +47 55 94 74 [email protected]
TTS Handling Systems ASHolterkollveien 6P.O. Box 49NO-1441 DrøbakTel: +47 64 90 79 10Fax: +47 64 93 16 [email protected]
TTS Ships Equipment ASFolke Bernadottesvei 38P.O. Box 3517, FyllingsdalenNO-5845 BergenTel: +47 55 11 30 50Fax: +47 55 11 30 [email protected]
TTS Marine ASBarstølveien 26Servicebox 602NO-4606 KristiansandTel: +47 38 04 95 00Fax: +47 38 04 93 [email protected]
TTS Offshore HandlingEquipment ASFolke Bernadottesvei 38Servicebox 3566, Fyllingsdalen5845 BergenTel. +47 55 34 84 00Fax. +47 55 34 84 [email protected]
POLANDTTS Poland sp. z o.o.Azymutalna 9 ,80 - 298 GdanskPolandTel: +48 58 760 30 40Mob: +48 608 433 [email protected]
SINGAPORETTS Singapore Ltd16 Enterprise RoadEnterprise 10Singapore 627699Tel: +65 68 67 90 70Fax: +65 62 64 47 [email protected]
SWEDENTTS Marine ABKämpegatan 3SE-411 04 GöteborgTel: +46 31 725 79 00Fax: +46 31 725 78 [email protected]
USATTS Marine Inc14730 Vickery Drive, Houston, TX 77032, USATel: +1 (281) 227 5999 Fax. +1 (281) 227 5998 [email protected]
VIETNAMTTS Vietnam6th Floor, Harbour View Building No 4, Tran Phu StreetHaiphong City, VietnamTel: +84 31 36 86 518Fax: +84 31 36 86 516
