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Norway Country Report SOUTH CHINA MORNING POST FRIDAY, SEPTEMBER 26, 2008

Prosperity through innovation

Norway

4.6 million CAPITAL

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natural gas production is still rising, and the Government Petroleum Fund – valued at more than US$250 billion – has been invested abroad against the time when mineral reserves diminish. Norway’s other major revenue earners include hydropower, fish, forests and minerals, which give rise to a solidly healthy manufacturing industry. Based in Oslo, Hydro is the world’s third-largest integrated aluminium supplier to the automotive, transport and building industries. Its extensive capacity and know-how has allowed it to take pole position in such areas as car safety devices, delivering some 7.5 million aluminium bumper beams to carmakers worldwide in 2006. Hydro also manufactures the crash box, a major step forward in vehicle safety design. Both inexpensive and easily replaceable, crash boxes help prevent damage to a car’s body in mediumspeed impacts, which makes significant reductions in repair and insurance costs. Newspaper readers all over the world may not realise the strong possibility that the paper in their hands may have come from a Norwegian forest. Norske Skog runs 18 paper mills in Norway and around the globe, managing a newsprint and magazine paper market of about 60 million tonnes. The company’s main Norwegian mill is the nation’s largest producer of newsprint, and one of the most productive in Europe, using twin wire paper machines and modern thermo-mechanical pulping, which provide the paper with an increased range of brightness to printed images. More than 200 different species of fish and shellfish inhabit the waters off the 2,200km-long coastline, providing an estimated 27 million meals a day around the world. While fishing is a highly traditional industry, Norway has pioneered the development of modern aquaculture, with both the government and the industry itself fully aware that future growth in seafood exports depends on sustainable fishing and aquaculture production. Since the early 1970s, Norway has been a pioneer in salmon farming, with researchers improving genetic stocks, developing new types of feed and feeding technology, and investigating fish behaviour, health and well-being. Norway has also worked on developing and expanding the aquaculture market for cod, halibut, and a range of other marine species, along with tropical freshwater fish, such as tilapia, for farming in developing countries. One of Norway’s most visible products is its knitted woollen sweaters, a tradition that goes back more than 1,000 years. The long, curling fibres of Norwegian wool are ideal for keeping out the cold, and enhanced by intricate patterns and designs, sweaters have become one of the country’s most distinguished exports. One of the best known manufacturers is Dale of Norway, founded by Peter Jebsen in 1879, which started making sweaters for the Norwegian national ski team in 1956. Dale became an official licensee at the 2002 Salt Lake City Winter Olympics, and its designs will be emblazoned on sweaters at the next winter Games in 2010 in Vancouver.

Norwegian products are in increasing demand. Photo: Pål Bugge/INN

Trondheim rond

Berge gen Oslo Os

Oslo

Stav Stavanger LANGUAGES Bokmal Norwegian (official), Nynorsk Norwegian (official), small Sami- and Finnish-speaking minorities

GDP (US$)

$247.4 billion KEY INDUSTRIES Petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles, fishing

Although much of its wealth stems from natural resources, the country is banking on ingenuity and industry to keep ahead, writes Ed Peters hen visitors flocked to the International Contemporary Furniture Fair in New York in May, there was no doubting that the star attractions came from Norway. Four of the Scandinavian kingdom’s top designers – Fora Form, Variér Furniture, Aksel Hansson and Mokasser – contributed to the show, with their eye-catching, avant garde pieces drawing plenty of attention. While Norway is one of the wealthiest countries in the world, with a GDP of US$247.4 billion heavily boosted by oil and gas production which accounts for one third of all exports, it is also making its presence felt in global markets with its creativity and human resources. Norway has not always enjoyed such fiscal pre-eminence. During the Dark Ages it was chiefly known in Europe for the raids launched by the Vikings, though these petered out when King Olav Tryggvason converted to Christianity in 994 AD. After being allied to both Denmark and Sweden over the subsequent centuries, Norway became fully independent in 1905. Its population numbers less than 5 million. However, more than a few Norwegians have made their mark in the world: Roald Amundsen was the first man to reach both the North and South Poles; Roald Dahl’s books have delighted children and adults for generations; many regard Edvard Grieg as a truly ground-breaking composer, and Henrik Ibsen as an unparalleled dramatist; Edvard Munch’s The Scream has become an icon of the expressionist school of painting, and Liv Ullman is an enduring icon of the silver screen. It was only in the 1960s when substantial oil and gas reserves were discovered in offshore waters that Norway started its rise to prosperity. The country exports more than 3 million barrels of oil a day, only being outstripped by Saudi Arabia and Russia. And while having decided in a 1994 referendum to remain outside the European Union (EU), Norway is still a member of the European Economic Area, and makes a sizeable contribution to the EU budget. Much of Norway’s wealth is sunk into its social welfare system, financed by high taxes but allowing all the country’s citizens free health care, schooling and many other benefits, while unemployment hovers at around 2 per cent. The top rate for income tax is 54.3 per cent, while value-added tax is assessed at 25 per cent. However, there are reduced rates for food, transport, cinemas, public broadcasting and hotel accommodation. While the average monthly pay is around 33,100 kroner (HK$44,000), workers are left with only a moderate disposable income after direct and indirect tax deductions. Both capital gains and corporation tax are rated at 28 per cent, while oil companies pay an extra flat rate of 50 per cent on income resulting from the extraction, processing and transport of oil. Large-scale state enterprises control key areas, such as petroleum, although the government is moving ahead with privatisation. Oil production peaked in 2000, but

Tromso

POPULATION

NATURAL RESOURCES Petroleum, natural gas, iron ore, copper, lead, zinc, titanium, nickel, fish, timber, hydropower KEY TRADING PARTNERS Britain, Germany, Sweden, Netherlands, France, China, United States HEAD OF STATE HEAD OF GOVERNMENT King Harald V Prime Minister Jens Stoltenberg

SCMP GRAPHIC

PHOTO: EPA SOURCE: CIA WORLD FACTBOOK

Reine in Lofoten, which is dotted with cosy villages, is home to Norway’s largest number of nesting birds. Photo: Nils-Erik Bjørholt/Innovation Norway

Spectacular and untouched wilderness awaits visitors Ed Peters There are two prime attractions luring visitors to Norway – the great outdoors, and the great indoors. Contrasting with the country’s wealth of scenic national parks is an array of quirky places to stay, from vintage hotels, to working farms, to fisher folks’ cabins. The most northerly of the three Scandinavian countries, Norway’s western coast is made up of a series of rugged fjords flanked by majestic mountains carved out by the Ice Age. Stretching over some 385,000 sq km, the population is a mere 4.75 million, so the vast majority of Norway is untouched wilderness. Even outside the national parks, much of the country is totally unspoiled. First stop on many visitors mustdo list is the stupendous Vøringsfossen waterfall in Måbødalen, which cascades 182 metres down the mountainside. This is the essence of attractions in Norway, pure, natural and compulsive viewing from the many specially built lookout points. Equally popular is the Trollstigen Mountain Road, which zigzags its

way up a valley beside the Stigfossen waterfall in the heart of the Romsdal district. This ranks as one of the great drives of the world, a miracle of human engineering beside one of the most amazing natural landscapes.

Even closer to nature are the many rorbu, or cabins, whose rustic simplicity is a great part of their charm Road warriors will find equally spectacular scenery on the Atlantic Road, which bends back and forth over a dozen bridges that jut out over the sea linking the islands between Molde (which hosts an eclectic jazz festival each summer) and Kristiansund in the western fjords. While in summer motorists might spot whales and seals basking in the ocean, many tourists prefer to drive along here in the winter to

experience the storms which pound the coast. In the north of the country, off the port of Narvik, the Lofoten Islands provide a gentler experience, dotted with cosy villages and home to Norway’s largest number of nesting birds. A former Viking household, which was excavated by archaeologists at Borg, has been turned into a living museum, while a seaborne safari, aboard a dinghy or a regular passenger boat, is a highlight of any visit in the autumn when killer whales swim offshore to feed on shoals of herring. Norway’s accommodation is uniquely welcoming. Typical of its grand hotels is the Union Øye in Sunnmøre, which has been enchanting guests for more than a century, a classic timber-framed time capsule whose 27 rooms are deliberately without TV, radio or telephone. Each has a four-poster bed, and boasts jaw-dropping views of the surrounding valley and mountains. Nearby rivers teem with salmon, and upland lakes provide unrivalled sport for trout fishermen. Even closer to nature are the many rorbu, or cabins, whose rustic simplicity is a great part of their

charm. Dotted among Norway’s towns and villages, self-catering rorbu are often little more than living room and kitchen, plus shower and bedroom, though the more expensive may have more modern conveniences such as an outdoor hot tub. Naturally, the chief attraction of staying here is the chance to go fishing, either solo or as part of the crew on a local boat. Families should jump at the chance to experience a farmstay – taking part in daily activities and helping to look after the animals. The farms vary in size, from mountain smallholdings to large flatland enterprises, and guests may also be able to go horse riding, biking or take a boat trip. One of the most picturesque is Strind Farm in Lom, near the mountains of Jotunheimen, where visitors can watch the sheep graze from the comfort of their cabin’s flower garden. Perhaps Norway’s most amazing lodging is Preikestolhytta, which is remarkable not so much in itself as for its location. It stands a couple of hours’ trek from Pulpit Rock, a 600square-metre plateau which towers some 600 metres over Lysefjord, a marvellous look-out point created by

Fish or oil? Debate divides the far north Agence France-Presse in Henningsvaer The pristine Lofoten Islands off Norway’s far north paint an idyllic image of tranquility, but beneath the surface is a roiling debate over the islands’ resources, dividing fishermen, environmentalists and oil companies. Oilmen, spurred by the meteoric rise in oil prices, have for some time been eyeing the picturesque archipelago where high mountains plunge down into the sea. Norway is the world’s fifth-biggest oil exporter, but it has seen its production of black gold decline since peaking in 2001. And there has been no major discoveries in recent years to provide a glimmer of hope once its ageing, dwindling wells dry up. “Production from the fields currently producing on the Norwegian continental shelf will be reduced by 50 per cent by 2023,” said Oerjan Birkeland, exploration manager for StatoilHydro in the far north. “The region off Lofoten is of interest because we think there is a potential for oil and gas.” And that is exactly what environmentalists and fishermen do not want to hear. These waters are home to the world’s biggest remaining cod stocks, a species that has been a victim of overfishing in Europe and North America, and the biggest herring stocks. Fishing is the Lofoten Islands’ main commercial activity. The coastline attests to this, dotted with quaint fishing cabins on stilts, some of which have now been converted into shelters for tourists – another important industry for the islands’ 25,000 residents. Each spring, a 1,000-year-old tradi-

The Lofoten Islands are at the centre of a dispute over oil. Photo: AFP

These waters are home to the world’s biggest remaining cod stocks, a species that has been a victim of overfishing in Europe and North America

tion is continued. The cod is placed outdoors to dry on huge wooden structures, before being exported to southern Europe for another timehonoured tradition, the classic dish bacalao. “For some islands, if there was no fishing you would have to leave,” said Hermod Larsen, the local head of the Raafisklag, the organisation that sells the fish. “We have to live together [with the oil companies], but not in Lofoten,” he insisted. The government, under pressure from environmentalists and itself torn on the issue, has prohibited all oil activities in the unspoiled area until at least 2010, when the issue will be reviewed. With that deadline now just more than a year away, StatoilHydro – a company 63 per cent owned by the state and which brings in a bundle to state coffers – has launched a major charm offensive emphasising its environmental efforts. Maren Esmark of the Norwegian

branch of the Worldwide Fund for Nature (WWF) branded the lobbying campaign as “disgusting”. “If you were to have an oil spill around Lofoten in the winter time, which is when accidents are more likely to happen, it would be very difficult to clean it up because [at that time of the year] you have only four hours of daylight,” she said. StatoilHydro said, however, it would be well-prepared. Before any drilling took place, “we carry out about 3,000 simulations of an oil spill and we determine an oil spill contingency plan based on the worst case scenario”, Mr Birkeland said. Locals have also expressed concern about the effect the sight of massive drilling platforms near the coast would have on tourists. “You would need new infrastructure, maritime traffic would increase, and there would be more noise and risk of pollution,” warned Heike Vester, a German biologist who organises ocean safaris from the town of Henningsvaer. “And you won’t just get platforms, you also need a harbour for big tankers,” she noted. A poll quoted by WWF suggested that 66.2 per cent of inhabitants in northern Norway were opposed to oil activities near the archipelago. The government has nonetheless allowed seismic studies to be conducted off the Lofoten Islands in order to detect any possible existence of oil or gas. But Ms Esmark lamented, “if you first find oil, it is then much harder to impose a moratorium”. Fishermen complain that the powerful seismic pressure has already scared away the fish, with one of them evoking “bombings similar to Vietnam”.

nature when the glacier melted around 10,000 years ago. The delights of the great indoors continue in Norway’s restaurants and cafes, which serve a variety of intriguing local dishes. Breakfasts typically include geitost, brown goats’ cheese that has a sharp yet sweet flavour, rømmegrøt – a porridge made from natural sour cream and served with butter, cinnamon and sugar – and smoked salmon and scrambled eggs. At lunchtime, the hot dog served in a tortilla known as pølse i lompe makes a good snack, while kjøttkaker – fried meatballs with peas and boiled potatoes – is a regular dinner dish. The traditional festive smalahove (boiled sheep’s head, including the eyes) is something of an acquired taste. Much of the attraction of Norwegian cuisine is the abundance of fresh produce in the country. Minimal pollution and rich vegetation ensure that the country’s lamb is some of the tastiest in the world, fish thrive in the cold coastal waters, and sunlit long days mean that citrus fruit is packed with flavour, providing a delicious conclusion to every meal.

Tata finds perfect testing ground for electric car Reuters in New Delhi India’s Tata Motors plans to launch an electric version of its Indica hatchback in Norway within a year, and will bring it to the local market at a later stage. Tata Motors, which is also making the Nano, billed as the world’s cheapest car, showcased a prototype of the Indica ev earlier this month. “This is one of the technologies that we are looking at, as you know that electric cars are almost zero emission,” managing director Ravi Kant said. Tata Motors’ electric car – with a left-hand drive – had been developed in collaboration with a Norwegian firm, Mr Kant said. “Right now we want to test it out in Norway with the Norwegian party. Because, you know, a lot of infrastructure is required for electric vehicles and … in Norway, they are making arrangements for electric cars. We will bring that to India at an appropriate time.” S. Ravishankar, senior general manager at Tata Motors’ engineering research centre, said the car could run for 175km to 200km when fully charged with a “twopack” battery, but mileage could vary according to the battery used. Carmakers, including Nissan Motor and Mitsubishi Motors, are preparing to roll out electric vehicles in the coming years, amid soaring gasoline prices and stricter emission rules. American giant General Motors, meanwhile, is looking to beat Toyota Motor to the punch with its all-electric Chevy Volt.

S2 Norway Country Report

FRIDAY, SEPTEMBER 26, 2008 SOUTH CHINA MORNING POST

Sponsored section in co-operation with Discovery Reports

SeaBird is preparing to spread its wings over Asia High-quality data from deep water is this cost-effective company’s speciality Reports by Michelle Titus and Elizabeth Dusch Oil companies are constantly looking for more cost-effective ways to explore new areas and at the same time maximise the utilisation of reserves in existing oilfields. SeaBird Exploration, which is listed on the Oslo Exchange under “SBX”, offers seismic exploration services for companies worldwide including the North Sea, Brazil, the Gulf of Mexico, India, east and west Africa and the Far East. The company recently reported its second-quarter earnings, which grew by 222 per cent compared to the same period last year. “We built the company on its reputation, performance, efficiency and cost-effective operations. We don’t subcontract any of our business, so we are in control of our investment,” said chairman and chief executive Tim Isden regarding the keys to the company’s success. Expansion into Asia Pacific is an integral part of SeaBird’s growth strategy. SeaBird Exploration established its first Asia Pacific office in Singapore last year, headed by Phil Gunn, in line with its thrust to have greater access to the Asian marketplace. The expansion will enhance the company’s customer support within the region while providing an ideal platform to fuel its continued growth. “It’s a major step in our forward strategy,” said Mr Isden of SeaBird’s Asian operations. The company plans to increase awareness of its products and services in the region through roadshows and by building relationships with potential customers and partners. SeaBird Exploration specialises in providing seismic data monitoring solutions for oil and gas exploration and production companies. It is a professional supplier of source vessels, shallow water 2D and 3D surveys and 2D long-offset surveys, and has developed further to ocean bottom four component 4D services for oil companies and contractors worldwide. The company provides an extensive

We built the company on its reputation, performance, efficiency and cost-effective operations. We don’t subcontract any of our business, so we are in control of our investment Tim Isden Chairman and chief executive, SeaBird Exploration

portfolio of multidisciplinary geophysical services to the oil and gas exploration and production communities. Fifty per cent of SeaBird’s business is now focused on seismic operations, where it monitors how the reservoirs in existing fields have changed over a period of time. The other half of the business comes from exploration in areas where oil and gas have not been found, such as in east Africa and India. Innovative forms of drilling and extraction in new areas drive the growth of exploration and seismic operations. The company was established in 1996 and it has expanded in the

following years. SeaBird embarked on an aggressive growth strategy in 2006, when it went public on the Oslo Stock Exchange, and it has now grown its fleet from three to nine vessels. The new ship, Hugin Explorer, has already completed its first commercial project and has mobilised to west Africa to commence a full-scale oceanbottom node survey for Total. The completion of Hugin Explorer is another significant move in the company’s future. It will enhance SeaBird’s new ocean bottom seismic (OBS) business, which consists of two types; ocean bottom cable (OBC) and ocean bottom nodes (OBN). The former involves laying a cable on the seabed, either permanently or temporarily, to record seismic data. The latter involves installation of autonomous nodes in a grid-like fashion using GPS and fourdimensional technology. SeaBird bought a company in 2006 that owns the patents and develops the technology for OBN, therefore it uses nodes rather than cables to gather seismic information. The information gathered shows how a specific reservoir has changed over time and how it may change in the future. “We follow the ocean-bottom cable business, but we prefer to utilise oceanbottom nodes because it’s a more efficient way of obtaining data in reservoir areas where installations are preventing other acquisition methods. In most cases the installations are directly over the reservoirs and OBN provides extremely high-quality data where no other method is so successful or capable in waters up to 3,000 metres in depth,” Mr Isden said. SeaBird now employs close to 800 direct employees spread across its worldwide offices located in Oslo and Trondheim in Norway, Dubai, Houston, St Petersburg and now Singapore. Mr Isden, who is one of the company’s three founders and its biggest single shareholder, knows that penetrating the Asian market will not happen overnight. The 12-year old company, however, is in it for the long haul. For SeaBird, Asia’s enormous potential is definitely worth the effort.

Markhus and Flexmodul deliver prefabricated modules NORSOK Standard refers to products that deliver safety, add value and are cost-efficient. In the field of prefabricated modular living quarters and cabins for the offshore and marine sector, this standard is perfected by the Norwegian company Markhus. The architectural and structural engineering firm is very experienced, with almost 25 years in high-standard safety regulations applicable to offshore installations in the North Sea. It developed the unique Flexmodule system: super-lightweight, prefabricated modules ideal for living quarters, control rooms, mess rooms, offices, galleys and lounges on ships, rigs and oil platforms. “When it comes to living quarters and other types of offshore modules, we can take that from A to Z,” said managing director and founder John Inge Markhus. The biggest module the company built was for 102 persons, and it was delivered in a record 16 weeks. Markhus established the subsidiary Flexmodul in 1993 to manufacture Flexmodule systems and provide a complete package to customers, from design and engineering to production and delivery. Short construction time, and easy modification, replacement or expansion, as well as rapid delivery are some features that have made Flexmodul a supplier of choice for StatoilHydro, British Petroleum and Conoco Phillips.

John Inge Markhus, managing director and founder of Markhus

Through its Singapore-based subsidiaries, Markhus Asia and Flexmodule Asia, both companies have built long-term relationships with customers. Markhus Asia caters to Cosco, Keppel FELS and other customers on the mainland, Southeast Asia and South Korea. Markhus and Flexmodul anticipate increased business from the rebuilding, modification or upgrade of existing

platforms in the North Sea as well as from major projects throughout Southeast Asia. A significant portion of Markhus’ current business is generated by its large turnkey solutions project for Cosco. “China used to have no influence on our turnover. But between this year and 2009, we expect China to represent half of the turnover for our company,” said Mr Markhus.

A Nordic idea for achieving the perfect banking experience Drawing on the strength and stability of Merita Bank, Nordbanken, Unibank, and Christiania Bank, Nordea Bank was borne out of a philosophy to provide superior value to customers and shareholders. “Nordea came from the ‘Nordic Idea’ to make things possible for clients,” said group executive vice-president Gunn Wærsted. “We aim to be the leading Nordic bank, acknowledged for its people, because banking is about giving a great customer experience.” Already No 1 in the Nordic region in terms of balance sheet, market capitalisation and assets under management, Nordea also ranks high among European banks in terms of total shareholder return and is counted among the few on the continent to withstand recent financial shocks. “We want to be prudent and profitable by controlling costs and capital and by minimising risks,” said senior vicepresident Anne-Margrethe Firing. A truly universal bank, Nordea handles both corporate and retail accounts, from customers like StatoilHydro to the man on the street. Its roadmap for growth entails following its Nordic customers into new markets such as Poland and Russia. It will also focus on niche energy, shipping and offshore industries where Nordea is a recognised global banking leader. Nordea has been supporting Nordic companies based in China since 1984 through a Merita Bank representative

Gunn Wærsted, group executive vice-president of Nordea office in Beijing. The group opened a branch in Shanghai in April to officially launch products and services for corporate lending, trade, cash management and guarantees, advisories for entering new markets, foreign exchange, asset management and corporate finance. “Our strategy in China is to support

Nordic customers with financial advice and services, as well as to acquire the official licences needed to support that strategy,” said Ms Firing, who is also head of international networks. “Our philosophy includes recruiting local people with the market expertise to work in close cooperation with our Nordic colleagues.”

Rainpower pours effort into research Rainpower is investing its resources in research and development, particularly in the development of new hydro turbine solutions. With its Trondheim laboratory, the firm is one of Norway’s greatest contributors to advancing technology in the hydropower field. “We are really top of the line in the hydro turbine hydraulic technology business,” said marketing manager Tore Knutsen. Rainpower specialises in supplying technology, products and services to the hydropower industry. The company was established in November last year after previously operating under General Electric (GE) and, prior to that, Kværner. Rainpower manufactures high-head turbines and small hydro power plants and provides technology, maintenance, refurbishment, upgrading and general services. The company covers the whole value chain, from design and development to installation and commissioning.

Tore Knutsen, marketing manager

Following the spin-off from GE, Rainpower focuses more on R&D. “Being based in a high-cost country such as Norway, we have to sell technology. That’s why we emphasise development. We have to be the best in the world to have a prosperous future,” Mr Knutsen said.

While R&D is performed in Norway, China currently serves as a major production centre for the company. Through its relationship with GE and Kværner, Rainpower has been active in the market since the 1980s. For the future, Rainpower plans to develop local partnerships as GE phases out its hydro activities. The firm has been involved in the Three Gorges Dam project and has provided a reversible pump system for Tian Huang Ping. Rainpower will increase its presence further in China by opening a new office in Hangzhou next year and hiring additional engineers. “We have learned to appreciate their skills and what they represent today. “We believe that to successfully do business in China, as well as being competitive internationally, you’ve got to have an established company there manned by local Chinese,” Mr Knutsen said.

INC seizes opportunities in world market INC Invest seizes opportunities and adds value. Poised to move to the international arena, the Norwegian firm is looking for strategic alliances with Asian partners who want to venture in the Nordic region. “What’s interesting is the increasing activity in the oil and gas sector in Asia and other places worldwide. That’s our main focus today: to look at the possibilities of expansion throughout the world when it comes to logistics services in the oil and gas industry,” managing director Vidar Grønnevik said. INC Invest is the parent company of a consolidated group of 16 companies. It also has seven associated companies with the same owners. The INC group provides total solutions for industry, shipping, and offshore. The company has five different business areas, including fish farming, real estate, maintenance and technical services. It plans to expand internationally through its logistics services for oil and gas exploration.

Vidar Grønnevik, managing director of INC Invest The company has a promising start with its relationship with Singapore Offshore Production Services. “We have been talking to companies to study the possibility of forging alliances, and establishing businesses in Norway and

the North Sea area and in turn, they may help us do business in their region,” Mr Grønnevik said. INC’s logistics business unit consists of approximately 100 employees, most of them formerly employed by the Norwegian oil company Saga Petroleum, now a part of StatoilHydro. “They are exceptionally well trained and they deliver excellent results when it comes to supplying logistics services to the oil-producing platforms in the North Sea,” Mr Grønnevik said. The INC group runs one of the major shore-base facilities in Norway, providing 24-hour logistics services, materials packaging, crating and staging all vessels load-outs, fuels, lubes, environmental services, warehouse, freight forwarding and trucking services with Saga Fjordbase. “We are the most efficient oil supply base in Norway according to the benchmark,” Mr Grønnevik said.

Norway Country Report S3

SOUTH CHINA MORNING POST FRIDAY, SEPTEMBER 26, 2008

Sponsored section in co-operation with Discovery Reports

Environmental solutions the way ahead for WMS Wilhelmsen Maritime Services (WMS) was created in 2005 with a vision to shape the maritime service industry. Within three years, sales from this wholly-owned subsidiary of Wilh. Wilhelmsen ballooned tenfold to almost HK$8 billion. WMS operates an unparalleled global network of 350 offices in 71 countries and supports half of the world’s merchant fleet in more than 200 shipyards. WMS is represented in China with sales offices in Shanghai, Dalian and Guangzhou and service ports in more than 60 Chinese cities. “It has truly been an interesting journey, with important acquisitions along the way,” said WMS president and chief executive Dag Schjerven, who was behind the integration of the recognised brands Unitor and Callenberg into the company, building upon the existing Barber and Barwil foundations. Such acquisitions have been instrumental in accelerating growth for WMS and have played a major role in

significantly raising the parent company’s total income. WMS differentiates itself in the market by focusing on four areas of business that were rebranded under the Wilhelmsen flag this year: ships service, ship management, ships equipment and marine engineering. “The Wilhelmsen name is associated with maritime tradition, quality, trust and long-term sustainability which we also stand for,” Mr Schjerven said. The company offers wide-ranging services to the maritime industry. Its Wilhelmsen Ships Service supplies products, technical services, ship agency and logistics to ships with the capacity to serve its customers in 2,200 ports in 116 countries, including China. The WMS ship management and crewing division, Wilhelmsen Ship Management, is one of the world’s largest providers of third-party ship management services and solutions for all types of marine vessels, with 310 vessels under management and almost 9,000 marine personnel in its crew pool.

Wilhelmsen Marine Engineering is a leading supplier of electrical, automation and heating, ventilation and air conditioning systems. Wilhelmsen Ships Equipment delivers safety and environmental systems to the newbuilding and retrofit sectors as well as the offshore markets. As demand for maritime services has been growing in line with the boom in shipbuilding, WMS sees the opportunity to offer its products and services to owners, charterers and shipyards in Asia including China. “This is a highly fragmented sector with few global players. Ship owners are seeking a new breed of providers capable of delivering value-added products and services,” said Mr Schjerven. Through its acquisition of Callenberg, the company also operates an assembly plant for electrical switchboards for marine power distribution in Wuhu. In Shanghai, it has another factory for assembling fire protection systems and cryogenic insulation for gas tankers as well as a

International partnerships ensure a bright future for Saga Shipping lines are encountering rough sailing due to rising fuel costs. For Saga Forest Carriers, North America’s weak pulp exports add pressure to its forestry products transport service to Europe and the Far East. But expanding market opportunities through a growing pulp market in South America and increasing outbound dry bulk cargo in China are keeping the Norwegian firm running at full steam. China’s demand for pulp from Saga’s pulp mill partners in Brazil drives its Far East service. “We’ve been able to find the balance between the contract cargoes and spot opportunities in the dry bulk market. That has significantly improved our earnings,” said Saga president Lars Traaseth. Cargo volumes to and from China account for about 30 per cent of Saga’s business, and the volume has increased significantly year-on-year. Saga handles approximately 1.5 million tonnes in and out of China. It also actively carries steel from South Korea and Taiwan. Saga attributes its competitiveness to the NYK Group, which together with Norwegian Leif Höegh are Saga’s main partners. NYK provides Saga’s sophisticated, young and uniform vessels. The Japanese shipping giant also

Roald Nystad (left), senior vice-president, and Lars Traaseth, president

supports Saga through a huge logistics network in China. “We have NYK’s huge network in China, which gives us very good operational support. NYK has been present in China for many years and provided valuable support when Saga decided to make China a target market. The strong NYK brand and Saga’s modern fleet and efficient operation have been a good mix.” Mr Traaseth said.

Saga is meeting the demand for a very professional commercial operation, and the growth of China, by increasing the staff of local Chinese at its Shanghai office. Saga sees Chinese imports and exports continuing to grow. “The future looks positive,” Mr Traaseth said. “I think the key is to get good, first-class Chinese employees. And we have been able to secure them.”

ODIM on track Dresser-Rand energises for dominance China’s gas turbine market in automated handling solutions Norwegian technology group ODIM is securing its foothold in China after having obtained a second contract with BGP, the largest Chinese seismic Torgeir Haugan, contractor and a senior viceChina National president, global Petroleum Corporation (CNPC) operations subsidiary. Most seismic vessels launched today are equipped with ODIM handling systems. The company will also deliver automated handling systems worth almost HK$122 million for BGP’s 12-streamer seismic vessels. This brings the total value of the company’s projects in China to almost HK$200 million. It also confirms ODIM’s leadership in the offshore service vessels market, where it provides safe and efficient automated handling solutions for seismic, offshore supply and oceanographic vessels. “We are focusing on market niches where we want to be No 1,” said senior vice-president for global operations Torgeir Haugan. “We’ve diversified our product portfolio to create value for customers.” ODIM has been developing marine cable-handling systems and winches for offshore and naval vessels since 1974. It also caters to sub-sea deepwater installations with handling systems for subsea and oil and gas well extraction and intervention. Aside from Norway, ODIM also maintains offices in Houston, Canada and Singapore, and it is currently completing construction of an assembly and testing facility in Vietnam. The China market will be key to its pursuit of international domination. ODIM plans to establish an office on the mainland within the year, headed by Birger Myklebust in Shanghai, to forge further partnerships for manufacturing and build up its network of sub-suppliers. It is already a preferred supplier to China Offshore Services Limited (COSL) and will subcontract production from Dalian or Nanjing to supply new equipment to COSL and other customers in China’s shipbuilding and offshore oil and gas industries. “I see us locally present in China to support customers and the growing market, with products which provide efficiency, safety and smart solutions,” Mr Haugan said.

NYSE-listed Dresser-Rand Climate Change Programme to supplies rotating machinery for reduce greenhouse gas energy markets worldwide from emissions and minimise gas its centre of excellence in flares which release carbon Kongsberg, Norway. The dioxide into the atmosphere, company’s Norwegian division Dresser-Rand is optimistic about specialises in 1.4 to 41 megawatt expanding its market for gas gas turbine packages and turbine plants in this region. Odd Guldsten, develops cutting-edge power “Because we also make vice-president low-maintenance 2-megawattgeneration solutions for emergency, standby, continuous and general sized turbines that run on many and remote power supply, and manager types of fuel, we think there is indirectly-fired gas turbines for opportunity for us in China to carbon dioxide-neutral power plants. supply turbines that can run landfill gas “We specialise in engineering and power plants, which decrease methane packaging complete gas turbine systems emissions,” sales manager Thomas that are customised for specific Palkovich said. applications, particularly in the offshore Dresser-Rand is a preferred partner of sector,” said vice-president and general Shell, Exxon, StatoilHydro, BP and manager Odd Guldsten. independent power suppliers in the The former Kongsberg Gas Turbines Changqi oil field, governments and the Company joined the Dresser-Rand group military. It collaborates with GE in the in 1985 and has delivered almost 1,000 gas production of LM-type aero-derivative turbine packages to all types of industries gas turbine packages and supplies afterin 62 countries. Since the mid-1970s, sales support throughout the life cycle of Dresser-Rand has installed gas turbines its products. for standby power in basements and on “We focus on having a good value the rooftops of banks, hospitals, telecom proposition for clients, providing centres and other buildings in Hong Kong equipment over a lifetime and developing and the mainland through a long-term alliances. We are very representative office in Beijing. competitive in niche products and As China embarks on a National applications,” Mr Guldsten said.

Lorentzen & Stemoco offers priceless expertise in China Navigating the rough waters of with an emphasis on rigs, drill the shipping industry is easier rigs and floating production. with the assistance of firms like Lorentzen & Stemoco has Lorentzen & Stemoco, a fully successfully contracted several integrated and independent drilling rigs and floating ship broking and consulting production units in South Korea company active in China since and the mainland. The company 1996. is for instance working with Finn Engelsen Finn Engelsen Jr, partner Sevan Marine, which has and managing director, said the Jr, partner and developed a new concept for key to the company’s success is joint managing drilling or floating oil production: director staying on top of the market. a circular platform which is “We consistently pitch new being built in the Cosco ideas to our clients, particularly to get shipyard in Nantong. them out there to do things before the Mr Engelsen attributes much of the market starts to move,” he said. company’s success in China to the More than one-third of Lorentzen & company’s technical expertise. The Stemoco’s business is related to China. company’s Chinese managers and The company has a dry bulk joint venture brokers have extensive knowledge of the with LSS in Shanghai and it has partnered local market that is invaluable to with Beijing (Wei Yuan) Maritime Lorentzen & Stemoco’s clients. Consultants for new building contracting, Relationship-building is another factor sales and purchase. Mr Engelsen sees in the company’s success. “The key is to enormous opportunities in the Chinese build up those relations and make sure market, targeting more than 30 selected that you cement them by regularly shipyards as its main contacts. bringing in more business. This implies The company specialises in dry bulk, that you have to evolve and advise of new particularly gas and specialised tankers, ideas,” said Mr Engelsen.

ship agency business, which is a 50-50 joint venture. Part of its strategy for increasing its presence on the mainland has been to work with Chinese partners who can provide local knowledge and competence. Contributing to a cleaner global environment by cutting fuel consumption and reducing emissions will be the focus for the Wilh. Wilhelmsen group. The group’s longterm ambition is to produce zeroemissions cargo carriers like its concept cargo ship the E/S Orcelle, which runs on wind, solar and water power. Through WMS, the group has launched innovative environmental technology for selective catalytic reduction and abatement technology, which reduce harmful emissions of nitrogen oxide and sulphur oxide that are produced by the combustion of bunker fuel. “If no action is taken, nitrogen oxide emissions from ships will surpass land-based emissions by 2020.” WMS forged strategic alliances

once more to bring these technologies to the market. The selective catalytic reduction technology is available through its joint venture with the Norwegian company Yara, one of the world’s largest producers of urea, which is used in agriculture fertilisers and for nitrogen oxide reduction. WMS also signed an agreement with the British Petroleum (BP) subsidiary Krystallon to distribute its abatement technology for eliminating sulphur oxides and particulate matters from emissions. The company is also developing ballast-water treatment systems and will assemble the necessary equipment in its factories in China and provide these solutions for ships that call to port on the mainland. “We want to bring this technology to the market and install it on new and existing ships. It is currently available for smaller engines but we’re making modifications for traditional two-stroke engines so that all ships can use this technology,” Mr Schjerven said.

Dag Schjerven, president and chief executive

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Partnerships are key for StatoilHydro In today’s climate of dwindling oil reserves and escalating demand for petrol, few companies possess the financial muscle and advanced technology necessary to explore untapped reservoirs and boost global supply. Leading the way is Norwegian energy heavyweight StatoilHydro, a merger between national oil company Statoil and the oil and gas division of Norsk Hydro. Listed on both the Oslo and New York stock exchanges, StatoilHydro has a market capitalisation of more than HK$780 billion. It is the world’s largest operator of deepwater fields, the thirdlargest net seller of crude oil and one of the biggest gas suppliers worldwide. Since the discoveries of substantial oil fields in the North Sea during the 1960s, the company has emerged as the largest offshore operator on the oil-rich Norwegian continental shelf, where it runs 80 per cent of total production. “After the merger, there is now only one undisputed national energy champion of Norway. Representing a nation as a national champion is very important in the global competition for

new reserves,” said StatoilHydro China president Ole-Johan Lydersen. “Our installations in the Snøhvit, Gullfaks, Åsgard and Ormen Lange offshore fields and the Norwegian gas pipeline grid to Europe demonstrate our reliability under extreme conditions. Together, we leverage more than 30 years of expertise in commercialising oil and gas reserves.” StatoilHydro produces a daily average of approximately 1.7 million barrels of oil equivalents and has proven reserves of more than six billion barrels. The combined company is rapidly expanding its global reach, with operations in 40 countries and recent acquisitions in Canada, the Gulf of Mexico, Brazil, Russia and the United Kingdom. StatoilHydro is building a solid platform for international growth through partnerships with other national oil companies (NOCs). “In the energy industry, partnerships are about technology development and project execution skills,” Mr Lydersen said, “but most importantly it’s also about having compatible business philosophies and cultures.” Such as the relationships

Ole-Johan Lydersen, president of StatoilHydro China

StatoilHydro has been cultivating with Chinese NOCs, which started more than 20 years ago when Statoil began advising authorities and oil firms on energy-related matters. This led to the successful joint venture in 1997 between Statoil and stateowned China National Offshore Oil

Corporation (CNOOC) to operate the Lufeng field in the South China Sea. StatoilHydro hopes to expand its cooperation with CNOOC beyond its current joint venture. StatoilHydro also entered into a memorandum of understanding (MoU) for

strategic cooperation with China National Petroleum Corporation last year. The MoU encompasses collaboration on both domestic and overseas exploration and production, research and development as well as developing liquefied natural gas and new energy on the mainland. “China needs to develop its own energy resources. It needs to do it in an environmentally sustainable manner. This can be realised if it works closely with reliable partners. We believe StatoilHydro can work together with Chinese NOCs in undertaking these challenges,” said Mr Lydersen, who has been heading the China activities from Beijing since the merger. “Sharing the same background as national oil companies represents a unique and stronger foundation to build consensus and facilitate mutual respect as a basis for longstanding partnerships.” StatoilHydro supplies gas from North Africa, the Caspian Sea and North Sea and is now looking to include China in its portfolio to strengthen its position in the global gas value chain and downstream market. “We’re globalising this business segment and trying to get a foothold in

China, which has a large resource potential. Developing China’s significant gas resources and subsequently, its gas market and infrastructure, will be key to meeting growing energy demand.” Ranked No 1 in the Dow Jones Sustainability Index for four consecutive years, StatoilHydro is a leader in carbon capture storage technology – or the permanent and underground storage of carbon dioxide to reduce greenhouse gas emissions – which it performs at state-of-the-art installations in the Sleipner, Snøhvit and In Salah fields. “The enormity of China’s energy requirements will take its toll on the environment. We can also partner with China’s NOCs to develop new technologies for cleaner energy production.” StatoilHydro is committed to sustainable development and accessing renewable energy sources through increasing energy efficiency, accommodating global mechanisms for carbon trading, maintaining its leadership in carbon capture storage and harnessing energy from offshore wind and biofuels.

Stokke furniture builds long-lasting bonds John Binde, chief executive and managing director

NRS guarantees fresh salmon products worldwide Norway Royal Salmon became the thirdlargest salmon producer in Norway after it acquired several production facilities in 1999. It distributes 50,000 tonnes of salmon annually to 42 countries from offices in Trondheim and Kristiansand. Full-scale and widespread salmon production in facilities throughout Norway have enabled the company to provide a stable supply to customers. Because availability is totally dependent on stable, quality suppliers, NRS also ensures consistent and regular delivery volumes. “That’s a big advantage in terms of being able to provide stable volume to the market, because the production cycle in southern Norway is a little different from the north,” said chief executive and managing director John Binde. Multiple production facilities also reduce the risk of disease, as potential outbreaks are isolated by location. NRS guarantees premium products by following a common quality assurance system that is good to the fish, customers and the environment. Safe feeds are used, veterinarians regularly

check fish health, and farms and packing plants are clean. “We like to have full traceability during the entire process – from the egg stage of the fish, though the feeding process, until it is in the counter in the supermarket,” said Mr Binde. Some of the company’s first exports were to Hong Kong in 1992. Importers processed the salmon into fillets and smoked salmon for resale to restaurants and hotels. Salmon was also redistributed from there on to the mainland. NRS is now directly shipping to Beijing, Shanghai and other Chinese ports. It supplies salmon to 15 customers in Hong Kong and six on the mainland. NRS is currently looking for importers in Guangzhou that can trade and process salmon. “It’s a big business opportunity for Chinese food importers to bring our product into their portfolio,” said Mr Binde. NRS is currently considering opening a representative office in China to manage distribution in the region.

When Stokke launched the revolutionary Tripp Trapp high chair in the 1970s, the company took children’s furniture to new heights. The chair is fully adjustable and is designed to allow young children to sit at the table and interact with the family during meals. “Everything we do is made in the best interests of the child,” said chief executive Kristine Landmark. “The Tripp Trapp, as with all our products, is firmly grounded in the philosophy that young children and their parents should stay within close proximity right from the start to foster deep and lasting relationships.” Around the world, parents and children alike are sitting up and taking

notice. In Europe, the United States and Japan, the Tripp Trapp is a best-seller. South Koreans are buying the Stokke Xplory stroller, while Stokke’s Sleepi nursery collection is popular in Singapore. This small Norwegian company exports 98 per cent of its products. Stokke has been growing by 20 per cent annually since 2003. Founded in 1932, the traditional furniture company shot to prominence after it introduced the Tripp Trapp, but it wasn’t until 1998 that the company expanded its line of children’s furniture. The same safety, child-friendly and nurturing values were translated in subsequent designs for adjustable cots,

changing tables and its award-winning Xplory baby stroller, which is elevated, giving the baby visual contact with the mother. It recently introduced the Stokke Table Top to compliment the Tripp Trapp. “Our furniture evolves with the child and supports children in their daily development,” Ms Landmark said. “We constantly strive to fulfil the needs of children and improve on what is currently available in the market.” Stokke works with importers in Hong Kong, Japan, South Korea, Australia and New Zealand. It hopes to increase its sales in the region by starting partnerships with local retailers and distributors.

Kristine Landmark, chief executive

Aqua Gen seeks to breed success via partnerships

Odd Magne Rødseth, chief executive of Aqua Gen

What goes into every bite of the finest Atlantic salmon or rainbow trout? For Aqua Gen – the top supplier of genetic material to the global aquaculture industry – it is 40 years of pioneering research and development in selective breeding that produces these diseaseresistant, fast-growing and robust fish species. Aqua Gen pedigrees are derived from the company’s breeding programmes in Norway, where performance information from hundreds of thousands of fish from different families is stored and used to select the best brood fish to produce quality eggs, which are fully traceable and documented.

“Today’s Atlantic salmon and rainbow trout are bred from superior genetic material which has been stored in our bio banks,” said chief executive Odd Magne Rødseth. “Right now we’re planning breeding programmes for carp, shrimp and tilapia species which are popular in China.” Seafood is a staple of the Chinese diet. Domestic consumption is expected to rise 40 per cent by 2020 and will require the mainland’s aquaculture industry – which supplies 64 per cent of the mainland’s total seafood output – to catch up with burgeoning demand. “Aqua Gen wants to play a role in modernising China’s aquaculture industry. Breeding and genetics are vital

to developing a cost-effective and profitable fish-farming industry. Our partnerships have thrived for almost 20 years because we know what it takes,” Mr Rødseth said. Aqua Gen’s strategy for entering new markets is to link up research institutes and applied markets to facilitate technology transfer. In Iran and South Korea, where it is pursuing joint ventures to export salmon embryos, it is currently evaluating the market before investing in infrastructure. For China, Aqua Gen is seeking to forge alliances with research groups closely related to the aquaculture industry and with partners that can produce on an industrial scale.

Optimising water quality for versatile fish farming

Idar Schei, managing director Fish farming, or aquaculture, is a major mover in the agricultural industry of China, which produces one-third of the world’s seafood. Like other countries that depend on fishing for livelihood and economic sustenance, China welcomes technological innovations in aquaculture production. Norwegian firm AquaOptima offers ideal products for farming of fish that manage both the environment for the fish inside the tanks and the local surroundings. Its patented system, ECOTRAP, can control water quality in tanks and optimise the use of other essential factors including oxygen, energy and feed. “The ECO-TRAP is the solids removal system in the tanks. It is highly efficient and removes more than 90 per cent of the particles that settle at the bottom of the tank,” managing director Idar Schei said. Good water quality is crucial to the health of the fish. The AquaOptima system makes it easier to recycle water, adjust temperature and reduce building costs for fish farms. A key element to the system is that it can be used for cold or warm-water species anywhere. AquaOptima’s technology for fish farming is especially beneficial in areas with limited water and energy resources. “The river and fresh-water resources can be rather small, but we can use recirculation of the water to create a good water environment for the fish,” Mr Schei said. The company has made significant strides in Asia. It already has distributors in Hong Kong, Japan and Malaysia, and has recently opened an eel farm in China. It hopes to establish a direct presence in China and soon enter into an agreement with a distributor that will cover the whole country. The company has developed a complete hatchery for Malaysia’s fisheries department. Work is also under way on a salmon farm in Taiwan, a starting point to exploring the great potential that AquaOptima sees for salmon farming in China and Asia.

Focus on people is the key to NCW’s continued success NCW designs, manufactures and markets custombuilt winches and cranes for the offshore and marine industries. The company has a local Finn Nilsen, presence in managing Norway, the United director Arab Emirates, Singapore and China to ensure delivery of products to nearby shipyards, ship owners and naval architects and provide them the best support and after-sales value-added service. The company’s customers are mainly from India, Saudi Arabia and Singapore. Although it operates within competitors’ territories, NCW receives numerous repeat orders. Serving up to 75 per cent of the same customers as five years ago, it has boosted turnover to HK$195 million this year from HK$62 million last year. Turnover is expected to double next year. Success is also attributed to the company’s personal approach with clients and customers. “When it comes to concepts, our project department interacts very closely with customers because when you know people well, you will solve problems outside contracts,” said managing director Finn Nilsen. NCW employs 50 people worldwide, including 16 in China. The company attracts and retains the best engineers with excellent compensation packages and benefits, which are usually way above the norm. NCW is developing larger offshore cranes due to increasing oil explorations in deeper waters. To reach out to the Chinese market, it will expand its office in the region and build its own assembly plant in China within two years. NCW aims to partner with a major player in the marine and offshore market while maintaining local subcontractors. “Having an office locally, service capability locally and your own workshop are extremely important in succeeding.”

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OSM’s first-class service meets oil industry’s needs Since 1989, OSM Group has grown from a crewing agency into a highly diversified company. Aside from recruiting and training seafarers, it offers offshore and ship management and consultancy, naval architecture, new building supervision, marine insurance, quality assurance and even accounting services. The Norwegian firm manages 350 vessels, has 22 offices worldwide and employs 6,000 people in 32 countries. In Southeast Asia, OSM has offices in Hong Kong, Shanghai, Singapore and Manila. Clients are very satisfied with OSM’s first-class, personalised service, where top management involvement is handson and safety and quality are the highest priority. “Our offshore units and vessels are manned by qualified and well-trained personnel, meeting the oil industry’s wishes and requirements,” said OSM chairman Jan Morten Eskilt. OSM has a pool of trainees and cadets with decades of experience. The retention rate for crew is more than 95 per cent, because OSM has a “corporate culture that people want to go to”.

Jan Morten Eskilt, chairman of OSM

The company has a very good track record with oil companies because of its safe operations record and a consistent low level of lost-time incidents. This good reputation helped it win a contract to manage 15 ships for a state-owned oil company in Southeast Asia. OSM is a specialist in offshore projects, engineering and operations. It pioneered the development of offshore

shuttle tankers and semi-submersible accommodation units, or floating hotels, for offshore workers in the North Sea. “We are a market leader in these sectors,” Mr Eskilt said. “We’re the only ship manager that does this.” OSM serves 80 per cent multinationals and 20 per cent domestic firms in Asia. It has been training Chinese seafarers on the mainland since 1997. The largest customer in China is SinoTrans, in Beijing. OSM plans to increase the proportion of Asian clients and projects to 80 per cent in the future. “The Chinese market is so huge. What we want to do is to simply go into the offshore side of it,” said Mr Eskilt. The company sees great prospects on China’s continental shelf for anchor handlers, platform supply vessels and diving vessels. It seeks to complement this demand by supplying competent people to manage offshore vessels and platforms. “You can’t train people in a short period of time in how to operate an offshore unit or to build it. Since we have that competence in-house, we will really be sought after,” Mr Eskilt said.

Shipbuilding tradition is the lifeblood of Brevik Engineering Brevik Engineering’s lineage is steeped in Norway’s shipbuilding tradition. Its maritime engineering and design expertise is derived from its history as part of Brevik Group and Aker Yard. Its recent purchase by Strata Marine and Offshore Group has allowed Brevik Engineering to take on large-scale projects with its sister company Standard Engineering. “Our good relations with shipyards and our high level of expertise allow us to create production-friendly designs that are less expensive to build,” said managing director Arnt Reines. The company employs an international team of 66 engineers and conducts research and development with universities in Gent, Trondheim, Oslo and Stockholm. The company has made a name in the development of floating production, storage and offloading (FPSO) vessels bound for deepwater locations in the North Sea. It also works with Frikstad Engineering in designing semisubmersible and drilling rigs out of Asia and has produced designs for FPSO vessels made in Singapore and Japan. With China dominating the global shipbuilding industry, Brevik Engineering is eager to share its expertise and unique designs with the mainland’s shipyards. “We can be a partner for new builds

Ivar Jacobsen (left), senior executive vice-president R&D, and Arnt Reines, managing director of Brevik Engineering for the FPSO and rig market and the supply of offshore service vessels. We’re offering our skills in designing offshore marine structures, special merchant vessels and energy projects,” said senior executive vice-president for R&D Ivar Jacobsen. Since its founding in 1917, Brevik Engineering has been prolific in developing designs for ro-ro vessels, drilling rigs, chemical tankers, offshore

service vessels and power plants. It has also pioneered and specialises in designing orange juice carriers, and leads the market in the conversion of seismic survey vessels and large passenger and cruise ships. As much as 80 per cent of Brevik Engineering’s clientele are repeat customers, many of whom collaborate with the company on research and development.

FFS meets the demands of a booming Asian fireboat market For Fire Fighting Systems (FFS), equipping the biggest fireboat in the world with its technology reinforces the Norwegian firm’s reputation as the leading designer and engineer of off-ship firefighting systems. The work on Hong Kong Fire Department’s Elite fireboat also signifies FFS’s aggressive foray in the booming fireboat-building market in Asia, particularly in China. Orders have increased tenfold since its owners acquired the company from Unitor Ships Service in 2003. In the past two years, business has doubled in the Far East, with the Singapore unit surpassing the Norway unit’s order intake. The region now accounts for two thirds of revenue, which reached HK$380 million last year. “The combination of good products, good service and competitive prices have helped us to make this great progress so

Truls Aannestad, group managing director of Fire Fighting Systems quickly,” said Far East managing director Danny Tan. “On top of that, we have not lost a customer.” Despite many competitors, orders are coming from leading customers like

Danish tug operator Svitzer, Jaya Shipbuilding, and the Fujian Shipbuilding Industry Group. Producing what the market needs makes FFS the preferred vendor. “Our product is manufactured at the lowest possible cost but with the highest quality and performance levels. Our strategy is to deliver a complete system, and we can give a performance guarantee on the system. I’ve never seen any of our competitors do the same,” said group managing director Truls Aannestad. FSS responds quickly to the needs of ship owners and yards. The company keeps costs competitive by operating a lean organisation. Nineteen engineers at the Norway office design and develop fi-fi equipment, with the production outsourced to both local and Swedish manufacturers. Additionally, the Singapore office has nine staff.

Sarens Transrig does the heavy lifting In July, heavy lift and transport specialist Sarens Transrig raised a drilling rig’s topside, with a weight equivalent to a stadium filled with 11,000 tonnes of cars, at a Norwegian yard. It joined the 10,700tonne deck of an Aker offshore drilling rig to its base, a world record in weight carried. The company’s lifting prowess comes from 26 years experience in Norway’s oil and gas industry and in managing major offshore shipyards in Northern Europe. Know-how and experienced personnel are also provided by Sarens Group, the mother firm in Belgium. “We have been able to succeed by having someone behind us to provide financial strength and access to markets and equipment,” said managing director Helge Kvalvik. Sarens Group comprises more than 40 companies worldwide. Its total turnover in 2007 was HK$1.73 billion, 64 per cent higher

Helge Kvalvik, managing director of Sarens Transrig than in 2006. Its staff grew by 51per cent to a total of 2,000 over the same period. Sarens Transrig develops unique lifting systems together with its suppliers. Standard and special equipment can handle from 100 to 12,000 tonnes. Services

also include the rental and use of cranes, and problem-solving linked to crane work. A new office in South Korea was established this year to widen regional presence, save on labour and transport costs, and reduce production time. It will also cater to Samsung and Hyundai Heavy Industries, the company’s biggest customers in Asia. Sarens Transrig strengthens its customer base by following international construction companies into new markets. Sarens Asia in Thailand has been serving the Asian market for decades by offering alternative solutions. Sarens Transrig is looking for a Chinese partner to help it to grow the China market over the next five years. “They need to have market knowledge and be able to talk with major construction companies, fabrication companies, and major shipyards and mining companies,” Mr Kvalvik said.

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Yara works from the ground up to provide global solutions Yara’s involvement in China spans almost a century since its first fertiliser shipment reached Chinese soil in 1913. Today, the Oslo-based global producer and marketer of mineral fertilisers and chemicals is further strengthening its ties with the mainland in line with its mission to provide food and renewable energy for a growing world population. “We provide solutions for the major trends we see globally when it comes to food, energy, the environment and health,” president and chief executive Thorleif Enger said. With the continued rise in food prices and consumption, Yara aims to provide fertiliser to help meet global demand. The fertiliser is also used to generate biomass, which is the basis for producing bio-energy. This alternate energy source is becoming increasingly important in reducing emissions of carbon dioxide and other harmful gases. Yara has launched green initiatives in China, as environmental protection is critical. The company recently signed a partnership agreement with Sinochem to reduce nitrogen dioxide emissions in China. In addition, under the Kyoto Protocol, about 50 per cent of China’s clean development projects for nitric acid plants use Yara’s technology. Yara is also dedicated to providing consumers with wholesome, nutritious

We provide solutions for the major trends we see globally when it comes to food, energy, the environment and health Thorleif Enger President and chief executive, Yara International

food that is safe to eat. Supplying the right nutrients to the plants is the first step to ensuring healthy, safe crops for consumption. Yara works from the ground up to develop products that serve the needs of farmers and industrial customers worldwide. It collaborates with growers to study various types of soil and crops and to understand different weather conditions to tailor its products for diverse international markets. “We have more knowledge about the needs of the farmers than any other fertiliser company,” Mr Enger said. Chinese growers have been receptive to Yara’s products despite higher prices. The company has developed a unique type of fertiliser that provides balanced nutrients to crops, which increases quality and efficiency of production. Yara also plans to operate a production facility in the country, ideally through acquisition or joint venture with a local firm. This further builds upon Yara’s long history in the market, recognised brand name, and established presence, with four offices in China. “We have demonstrated that we have the competence, the stamina, and the long-term perspective. You can’t be in and out of this market. But if you are there and you do it right, it’s a very rewarding market,” said Mr Enger.

Demand for precious metals is a growth catalyst for KAR K.A. Rasmussen (KAR) is Scandinavia’s largest supplier of precious metals. From a small workshop in Oslo founded in 1872 by goldsmith Knut Andreas Rasmussen, the company quickly transformed into a major producer of semi-manufactured precious metals such as silver, gold, platinum, palladium, rhodium and iridium. “Thirty years ago, our goal was to become the best precious metals producer in Norway. Now that we are No 1 in the Nordic region, we aim to capture new markets within Europe and Asia,” said managing director Tore Aasbakken from the company’s headquarters in Hamar, Norway. KAR offers a broad range of industrial and consumer metal products, from investment gold and silver cutlery to dental alloys and catalysts for the chemical industry. The company is a leading producer of silver crystals used to make formaldehyde for adhesives, varnish, plastics, preservatives and disinfectants. Forty five per cent of annual

Professor Harald Sverdrup, president and chairman revenues, HK$2.4 billion, is generated from supplying precious metals in sheets, mesh, wire, discs, bars and other semifinished products. To guarantee the highest purity and precision of products

and alloys, KAR operates a large-capacity refinery. Because of its intrinsic high value, precious metal is never discarded, and it may be recycled for a customer at KAR’s refinery. “KAR delivers quality and reliability with quick turnaround. We are highly flexible and tailor products based on a customer’s specifications,” Mr Aasbakken said. The company began acquiring leading European brands like Kultateollisuus, AB Gense and Eternum in 1986 to expand market share. Its partnership with global chemical giant Yara also helped reinforce its market position in the region. KAR provides catalyst gauzes for fertiliser production and hopes to penetrate the mainland market as Yara explores growth opportunities in China. “We would like to start the selling process but maintain production in Norway, because the price of precious metals is the same in Oslo as it is in Hong Kong,” Mr Aasbakken said.

Eitzen Chemical looks forward to continuing Asian growth Following the tradition of parent firm Eitzen Group, a family-owned and controlled company which has pioneered in transporting oil in bulk since 1883, Eitzen Chemical is pursuing its proud history and leadership in the chemical shipping industry. The company now ranks as the third-largest chemical transport company in the world, with more than a hundred types and sizes of chemical tankers in its fleet. Eitzen Chemical was the result of a major spin-off when Camillo Eitzen acquired Songa Shipholding in 2006. It was thereafter listed on the Oslo Stock Exchange, with Camillo Eitzen maintaining 50 per cent ownership under Axel Eitzen as chairman. The shipping company operates from offices in Denmark, France, Spain, the United States and Singapore. It transports a wide range of liquids including organic and non-organic chemicals, petroleum products, vegetable oils, lube oils and

Terje Askvig, chief executive of Eitzen Chemical even wine. It has been pursuing substantial business in Asia for many years. “We have at any given time between 10 and 12 vessels trading in Asia. You can’t

really be in the chemical market without being in Asia. It’s the fastest-growing market,” said Terje Askvig, Eitzen Chemical chief executive. The substantial size of Eitzen Chemical’s young fleet – the vessels’ average age is about nine years – makes the company very competitive. With more than 40 newbuildings coming, and complemented by its cost-efficient service and dedicated team, it is looking towards increasing business in the Far East. This market currently contributes a significant part of Eitzen Chemical’s total business. The regional headquarters in Singapore facilitates Eitzen Chemical’s operations in Asia, and the company welcomes business opportunities and partnerships in China and other parts of the region. “It is important for us to grow our presence in Asia. We have a strong presence today, but we aim to grow even further,” Mr Askvig said.

Moving apace with China in space Horten-based space components and equipment supplier Norspace has a strategic partner for its activities in China. Its lone client in the country so far is nonetheless an important mover in China’s space initiatives. The stateowned China Academy of Space Technology (CAST) develops and manufactures Chinese spacecraft, including scientific research satellites and application satellites. “China is offering a lot of opportunities for a company like us to supply to the Chinese satellite builders,” president Sverre Bisgaard said. China’s aggressive push in the space industry since 1956 has made it one of the world’s most advanced countries in the field of space technology. Norspace hopes to ride on this growth by expanding its relationship with Cast with more product offerings and project collaborations. The company also has an agent in Xian that promotes its products and looks for other potential clients.

Sverre Bisgaard, president of Norspace Globally recognised in its niche, Norspace supplies components and equipment to the international space industry. It specialises in analogue and microwave electronics for satellites and signal interface electronics to launchers. Its products include building blocks

related to analogue signal processing such as surface acoustic wave filters and modules, filter banks, frequency converters, switch matrices, interconnect processors and frequency generation. Norspace has supplied more than 8,000 filters, which are on board around 120 satellites orbiting the earth today. Norspace’s latest offerings for the year include a new family of on-board products for telemetry, tracking and control covering command receivers, telemetry transmitters and beacons and S-band transponders. The company’s market leadership and sophisticated product range are built on cutting-edge technology. Its strong staff of engineers works on design and production as well as research and development. The space supplier also maintains personal relationships with its highly specialised clientele. It is always open to collaborations with universities and other companies or institutions.