Erhvervs-, Vækst- og Eksportudvalget 2012-13
ERU Alm.del Bilag 204
Offentligt
MAN Diesel & Turbo
Presentation for Danish delegation March 2013
Marine and Offshore market
MDT OrganizationOwn and Licensee productionProjects and OpportunitiesChallengesLocalization
Kjeld AaboSenior Manager Marine and OffshoreMAN Diesel & Turbo Brasil
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Product Rangeby Strategic Business Unit
Engines & MarineSystems
Turbomachinery
Power Plants
After Sales
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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MAN Diesel & Turbo BrasilLocal Footprint: > 200 employees in BrazilRegional Support Office implemented 2011Diesel Workshop established in 2009PrimeServ Hub to be opened 2012• Scope : Power Plants, After Sales• Employees: 2 (+30in 2012 if A-3 comes)
• Scope: After Sales Diesel•Employees: 14 (being downsized to 7)
MANAUS
SALVADOR DA BAHIA
Turbo Workshop established in 2007• Scope: Handle THM O&M Contract• Employees: 100 (+70Turbomeca)
MACAÉDiesel Workshop established in 2009• Scope: All diesel activities (PrimeServ,Sales Marine Systems & Power Plants)• Employees: ~80 (+10 in 2012)
RIO – SÃO CRISTÓVÃORepair shop acquired in 2011• Scope: Repair of turbomachinery anddiesel engines and part manufacturingCentral office created in 2004
•Employees:~ 50
• Scope: Sales Turbo (4), Controlling,Administration, Legal, Marketing• Employees: 13 (35 after move to 9thfloor)
PetrópolisMAN Diesel & TurboMDT_BRMarine & Offshore
RIO – CENTROOffshore S&S Roadmap in Brazil17.09.2012<><33 >
MAN Diesel & Turbo BrasilLincoln SousaMAN Diesel Management
Management Team
Dept. Management
Dept. Management
Kjeld AaboDept. Management
Power Plants 4(30)
PrimeServ-Rio 76(9)
Marine , Offshore and Navy 5Roberta Rodrigues
hhnn
Felipe Quadra
Aline F. BarrosME Service engineerCopenhagenMAN Diesel & TurboMDT_BRMarine & Offshore
Uri Stiubiener3< 4
Offshore S&S Roadmap in Brazil
17.09.2012
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Propulsion ProductsCP vs FP propellers for two and four-strokeengines- year 19044 hpPropeller diameters up to 8 m (960-40.000 kW)
Single in/single out reduction gearboxesFour sizes covering 21/31 to 32/44 engines
Remote control system AT2000For all engine types
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Sole Provider of a Diesel EngineProgramme from 450 kW to 87,000 kW
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Offshore E&PMarket ContactsPackageProvidersShip OwnersYards
Communication ofMDT Technologiesin the BrazilianMarket
ShipOperatorsDesignInstitutes
Universities
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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MDT Commissioning Support to YardYour team is trained by our teamThe MDT package includes:Comments on diagrams and drawings forauxiliary machineryFlushing of the engine
Alignment of the scope of supplyGeneral installation of equipment onboardErection and securing interfacesQuay and sea trial supervisionMAN Diesel & TurboOffshore S&S Roadmap in Brazil17.09.2012<8>
MDT_BR
Marine & Offshore
Drillship ProjectsRisks in Case of Order in Brazil1. Delay:• Yards are still virtual, and not even built today• Yards do not have previous experience with drill ship projects in Brazil• So far, all projects deliveries followed have been delayed2. Support needed:• Based on experience from Marine, yards need more support than scheduledfor under normal contracts3. Strong unions:• Strikes are often seen4. Cancelling or postponement for unknown time (regarding OSX’s FPSO project,the engine is under construction)5. Own production in Brazil will call for market experts, which will be hard to find6. EAS as one yard receiving drill ships order is, so far, after 3 years in operation,but is not able to deliver tankers on time, and with the expected and neededquality
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Licensees vs. Own Production
Yards in Brazil
Licensees
Subcon enginesLincensee built, but MDT suppliedDesign
Own-producedOnly 4 stroke
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Low Speed Licensee Network
PolandCegielski 1959
RussiaBryansk 1959
ChinaHHM1980DMD1980YMD1989CMD2007STX2007JAD2007ZJCME 2008ZHD2008RPM2008YungPu 2008GMD2011
KoreaHyundai 1976Doosan 1983STX1984
JapanMitsuiMakitaDiesel UnitedHitachi incl.IMEXKawasaki incl.Hanshin19261981200819511911
VietnamVinashin 2004
CroatiaUljanik 1954Split1967MAN Diesel & TurboMDT_BRMarine & OffshoreOffshore S&S Roadmap in Brazil17.09.2012<11>
Marine
Mark 9 Pre-runnerMAN Diesel & TurboMDT_BRMarine & OffshoreOffshore S&S Roadmap in Brazil
2006-06-1917.09.2012
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MAN B&W 6S35MC andMAN B&W 10K98MC-C on Testbed
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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SHIPYARDSMARINE
CNI: 7 LPG Carriers (EBN)
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Marine Market Brazilian YardsMain YardsEAS
Ordered15 crude tankers
Hot Projects5 x 32K product tankersBilled
MAUAEISA
4 X 48.3 product carrier
4 x 72.9K tankers
11 x product carriers8 x product tankers3 x 45K5 x 30K2 x container vessels4 x container vessels4 x 72.9K tankers
STX Promar
2 x LPG 4K4 x LPG 7K2 x LPG 12K
Billed
ITAJAIRIO NAVE
3 x 7500m� LPG2 x Kamsarmax bulkcarriersMDT_BRMarine & OffshoreOffshore S&S Roadmap in Brazil17.09.2012<
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MAN Diesel GenSets16/24 Series 450 to 990 kW
21/31 Series 950 to 1,935 kW
27/38 Series 1,500 to 2,970 kWMAN Diesel & TurboOffshore S&S Roadmap in Brazil17.09.2012<16>
MDT_BR
Marine & Offshore
OffshoreFPSO and drillships
Drillships
FPSO
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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The Brazilian Drillship ProgrammePlanned shipyard localizations
EAS, operational, with large delays
EEP (Paragua§ú), to be extended
Jurong, S/Y construction started late 2011
Keppel,operationalERG, to be extendedMAN Diesel & TurboMDT_BR
OSX, S/Yconstruction startedmid 2011
Drillship contractedDrillship under negotiation
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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SHIPYARDSOFFSHORE E&P
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Drillship ProjectsPetrobras CommitmentPetrobras has announced their intention to have 50 drillships in operation by2020, in order to achieve their plan to increase the oil production from 2 millionbarrels/day to 4.2 million barrels/day.About 25 new drillships remain to beordered.Petrobrás is very concerned about equipment delays that can affect theirperformance to achieve their new target for 2020 (4.2 million barrels/day).Each drillship takes about 48 months to build. The first vessel must be deliveredin June 2015 (29 months from now) and the last one in 2020.
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Drillship ProjectsPackage leadersNameABBProject Lead LocationNorwayRelation to MDTNo agreement /commitment. Is not easy tocooperate.No agreement /commitment. We still trythrough worldorganizational Norway.None
Siemens
Norway
Wärtsilä
Singapore (Local Office)Finland (Head Office)Brazil (Local Office)
GE/ConverteamWEGRongAn / STX
UKBrazilChina / Brazil
Close relationshipClose relationshipNo EA
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Petrobras Drill Ship ProjectHighlights•Operator/owner cannot be influenced on engine choice;
•Yards have two drivers for selection: Price / Local Content; Technical aspectsare left to the yards.•Yards are virtual or newly built and not finished. Very little competence andlack of experience;•Yards are forced by Petrobras to work with experienced yards and designinstitutes outside Brazil;•Due to the lack of experience, complete package supply is expected byshipyard and suggested by Petrobras at bid specification.MAN Diesel & TurboMDT_BRMarine & OffshoreOffshore S&S Roadmap in Brazil17.09.2012<22>
Marine & OffshoreSupply & support tugsHarbor tugsPusher tugsOffshore support vessels:Platform supply vesselAncor handling tug supplyPipelaying shipOil rig vessel
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Assembly and Testing of Gensets for Marine, Navyand OffshoreMarine power generating sets(“GenSets”)
Smaller GenSet 5L21/31950 kWDimensionsLenghtWidthHeightWeight5.83m1.60m3.19m21.5Ton
Bigger GenSet
20V32/44 CR10,850 kW
Dimensions
RANGE
LenghtWidthHeightWeight
13.86 m4.26 m5.02 m172 tons
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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SHIPYARDSOFFSHORE S&S
Wilson Sons: Virtual yard forAHTS and other larger S&SvesselsMAN Diesel & TurboMDT_BRMarine & OffshoreOffshore S&S Roadmap in Brazil17.09.2012<25>
SHIPYARDSTUGS
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Offshore S&SPotentialCurrent SituationSupply and Special VesselBy 2020(Sept/2012)Foreign vessels2352012-2020386Built in Brazil188∆ = 112300Total423686
• The initial estimation did not take the pre-salt area into account. Therefore,the market estimates an additional potential of 158 vessels, some to be builteven before 2020.TOTAL POTENTIAL = 270(PSV and AHTS to be built at Brazilian yards over the next years).
• This includes only PSV and AHTS, there is further potential for PLSV andConstruction Vessels, but for these, there is no concrete estimation, and wedo not know if they are going to be built in Brazil.
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Achievements in 2012
•
Contract signed with EISA shipyard for 4 PSVs to bebuilt for Swire Pacific Offshore Operations (Pte) Limited:- PSV 5000, powered by 4 MDT gensets 6L27/38(1980 kW @ 720rpm) each, 16 engines in totalContract effectiveness for 2 pusher tugs (1 x 8L21/31each) for JF Oliveira (Manaus)Offshore S&S market share research in Brazil: 6% MDT,13% Wartsila, 21% RR, 40% CaterpillarMore presence (articles) at publications focused onshipbuilding and offshore industries
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MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Navy ProjectsQuick overview3 Offshore Patrol Vessels recently acquiredby BR Navy. All of them with our 2x16V28/33Dengines.First vessel,Amazonas,has already benndelivered and is operating in Brazil.PROSUPER (5 frigates, 5 OPV and 1 LPV) status:• Navy has received proposals from 7 different countries, and this has beenpresented to the government.• The navy budget will have to be increased 14 times in order to be able tocarry on PROSUPER• World economic situation is not favorable and the navy is consideringalternatives. If PROSUPER will ever materialize, it will not be in 2013.MAN Diesel & TurboMDT_BRMarine & OffshoreOffshore S&S Roadmap in Brazil17.09.2012<29>
The Challenge and the Unknown!
Local content
Price
No orders in Brazil without investment in local content in time.
MAN Diesel & Turbo
MDT_BR
Marine & Offshore
Offshore S&S Roadmap in Brazil
17.09.2012
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Scope
Mechanical assemblyTurbo-charger
EngineAux. +PipingBase frame
Coupling+Alternator
Integration of 6 main mechanical componentsMAN Diesel & TurboMDT_BRMarine & OffshoreOffshore S&S Roadmap in Brazil17.09.2012<31>
LogisticsOur equipment, mainly the bigger gensets, require adequate logisticsinfrastructure because of their size, which is very close to road limitsDistanceRoadsBridgesTunnelsCablesThis is an picture of a big engine transport to the assembling workshop.Out from the workshop, the genset dimensions are considerably bigger!MAN Diesel & TurboMDT_BRMarine & OffshoreOffshore S&S Roadmap in Brazil17.09.2012<32>
Need
Partner localization:By the sea, near a portClose to sea shoreInland, far from the seaLower logistics cost!Low logistics costsHigh logistic costs!21/31Not Restrictive32/40 and 32/44CRMay be Restrictive!Offshore S&S Roadmap in Brazil17.09.2012<33>
For the small gensets, models:Access Road ConditionFor the big gensets, models:Access Road ConditionMAN Diesel & TurboMDT_BRMarine & Offshore
Test Facility4x 20FT STD. CONTAINERESSTRORAGE AREA
Auxiliary systems:Fuel oilStarting airCooling waterLube oilIntake airExhaust gasSludge treatmentElectrical panels
TEST STAND:20m x 20m x 16mNoise insulated
COOLING WATER SYSTEM
12MWLOADBANK
NOISE INSULATEDM.T.C.P.ELECTRICALG.C.P.CONTROL PANELSE.C.PE.A.PELECTRICAL SYSTEMSTEST CONTROL ROOMTEST ROOM
MECHANICALAUXILIARY SYSTEMS
Load bankEXHAUSTSTACK
OIL UNLOADING AND STORAGE
Control roomsMAN Diesel & TurboMDT_BRMarine & OffshoreOffshore S&S Roadmap in Brazil17.09.2012<34>
Partnership with Existing CompanyWe have had talks with other companies to evaluate thepossibility of making partnership agreements to use theirexisting installation and capacity:WEG
STEMACVOITHJARAGUASCHULERSIEMENSNRNGNUCLEPLatin AmericaDELPMAN Diesel & TurboMDT_BRMarine & Offshore
?Offshore S&S Roadmap in Brazil17.09.2012<35>
MAN Diesel & Turbo Investments PlansMAN aims to create value in Brazil:
100%Brazilianlocal content60%(CKD production)+ AquisitionandAssemblyofauxiliary enginesystems
30%Assemblyof theGenSet
+Testingofthe completeGenSets
imported enginecomponentsassembledto build the engineIn Brazil!
0%
Step 1
Step 2
Step 3
TimeMAN investments in BrazilQualification of Brazilian suppliers and staffOffshore S&S Roadmap in Brazil17.09.2012<36>
Step 4
Illustration qualitativeMAN Diesel & TurboMDT_BRMarine & Offshore