Customers and markets

The business area operates primarily in the global shipbuilding and ship repair markets. Customers are shipyards, shipping companies, consultancy firms and other system suppliers. Scana has its own sales offices in Germany, Singapore, Shanghai and Korea. The establishment of a representation office in Shanghai for the sale and service of gears and propulsion systems has proven to be a strategic success, whereby Scana’s position in the Asian market is now strengthened both commercially and technically.

Through its own facilities and an extensive agent and distributor network, the business area has developed a worldwide network of representation.

There has been a high level of activity within ship construction in both Europe and Asia. Suppliers of propulsion systems have extensive delivery periods and new contracts have been entered into for deliveries into 2011.

Scana has so far suffered to a limited extent from cancellations in Norway or in the world at large after the impact of the global financial crisis impact in 2008. Scana has few deliveries to the bulk market, the part of the market that has been affected most severely. The main part of Scana’s deliveries goes to shipyards in China and Korea that have a large element of state ownership. The shipyards are strong and we expect continuing positive activity within our market segments.

The high level of activity in the Gulf of Mexico and along the Brazilian coast will also affect Scana’s delivery programme. The high level of building activity helps new countries such as India and Vietnam to gradually capture a greater market share.

A reduced number of contracts for new ships is expected to result in a weaker market, which will also in turn affect the demand for products from Scana towards the end of 2010 and in 2011. But a potential downturn is expected to be temporary. Scana is well-positioned to meet the development which is expected from 2012. Scana’s increased efforts within the service and repair area will decrease the effect of a temporary-educed number of new contracts for ships.