KONGSBERG'S POSITION IN THE MERCHANT MARINE MARKET

The market for commercial vessels encompasses all types of ships, from simple dry cargo carriers to advanced tankers for the transportation of liquefied natural gas (LNG/LPG). Passenger ships in cruise and ferry traffic are also an important part of the merchant marine. The contracting of newbuildings is closely related to the expected trend in transport needs. Underlying growth in the world economy generates a greater need for sea transport of people, energy, raw materials and finished products. Another, increasingly more important factor that affects orders for new vessels involves the stricter environmental standards facing international shipping. The demand for new commercial vessels has been high in recent years. At the end of 2007, the leading shipbuilders' production capacity was booked solid for the next four years.

In 2007, KONGSBERG saw a substantial increase in new orders for commercial vessels.

KONGSBERG also supplies systems for navigation, dynamic positioning, monitoring and the control of cargo and engines for different types of commercial vessels. Deliveries increase in scope and value in proportion to how sophisticated a vessel is. The Group is a global market leader in systems integration, automation and surveillance systems for merchant vessels.

KONGSBERG is a strong brand name in international maritime communities. The company has built up a comprehensive distribution and service network, and we have our own local subsidiaries in the most important growth markets. It is important to be present in these markets since vendors with a firm local footing often have an advantage.

Market competition is keen. KONGSBERG's systems represent 'the central nervous system' in the operation of modern commercial vessels. By including as many functions as possible, the Group is gaining a competitive edge. A world-wide support network open 24/7 ensures that customers get help whenever and wherever they need it.

MARKET DRIVERS AND TRENDS

Shipbuilding

  • Shipyard capacity is increasing, mainly in China and South Korea. Both countries are building new shipyards at the same time as productivity is improving among established shipbuilders. In addition, new shipyards are being built in Vietnam, the Philippines and India
  • The leading shipyards in Asia currently have well-filled order books through 2011, and mid-sized shipyards in South Korea and China have backlogs equivalent to nearly three year's capacity.

Types of ships and geographical breakdown
It is of the utmost importance to be in the vanguard of new trends. New trends tend to outpace general market growth. This applies to most types of vessels and in most geographical areas.

  • The emphasis on more environment-friendly energy calls for a shift of power production from coal and oil to natural gas. This will require more LNG tankers. In the short term, new contracts depend on decisions to develop new gas fields and on the completion of terminals. LNG production vessels are a solution which can sometimes reduce the need for terminals.
  • The anticipated asymmetry between the production of and the demand for oil is expected to have a positive effect on the tanker market in a longer term perspective.

Our most important product areas for the merchant fleet market

Dynamic positioning systems

  • Steering systems that make it possible to keep a vessel/installation in the same position under demanding weather conditions

Navigation systems

  • Equipment for ships' bridges

Automation and surveillance systems

  • Systems for surveillance and the control of ships' engines, cargo, manoeuvring and propulsion

Maritime simulators and training systems

  • Systems for merchant marine and to other applications

Process automation

  • Systems for the control and coordination of onboard processes for LNG transport

Headquarters:
Telephone:
Telefax:
E-mail:
Postal address:

Visiting address:

Kongsberg Gruppen ASA
+47 32 28 82 00
+47 32 28 82 01
office@kongsberg.com
P.O. box1000
NO-3601 Kongsberg
Kirkegårdsveien 45