Markets and customers

The business area operates primarily in the global shipbuilding and ship repair markets. Our customers are shipyards, shipping companies, consultancy firms or other system suppliers. Scana has sales offices in Singapore, China, Korea, the USA and Brazil. Establishing a representation office in Shanghai for sale and service of gears and propulsion systems has proven to be a strategic success, given Scana’s strengthened position in the Asian market, both commercially and technically. Through our own facilities and an extensive agent and distributor network, the business area has developed a worldwide representation network.

2010 has seen a bustling activity in the completion of ships in Asia, based on contracts entered during the contract boom of 2006-2009. In 2009 and 2010, however, the number of new contracts has been the lowest in a 10-year perspective. The combination of a high number of cancelled orders and a global order deficiency has led to economic difficulties and bank-ruptcies for several shipyards, globally. This has in turn reduced delivery times from 2-3 years to approximately 1 year. Contracts signed in 2010 are mainly for deliveries in 2011, except for series stretching into 2013.

Scana has so far suffered only to a limited extent from financial crisis cancellations in Norway or globally. Fewer new contracts the recent two years have, however, made the market for Scana’s products dwindle. This effect will spill over into 2011, but demand is expected to increase gradually towards the end of the year. Scana’s increased focus on service and maintenance will dampen the effect of temporarily reduced new sales.