France_Shipbuilding market_seminar 2018

Shipbuilding market in France
Property of Belon Trade Consulting 11.2.2018

Exporting in the World – France ?
Property of Belon Trade Consulting 22
Source: COFACE 2017
French government agency
Low risk for both
Finland and France
Risk of non payment from the company from A1= very low to D= very high

Shipbuilding Industry in France
3
Shipbuilding industry: 9,5 billon € - 42 000 persons
• Newbuild: 3,5 billions – Retrofit/repair/maintenance : 1,2 billion €
• Shipbuilding/ship repair – passenger/cruise ships and ferries:
STX France, PIRIOU, SOCARENAM, CMN, Chantiers Navals de Marseille.
• Shipbuilding - Leasure boats: Jeanneau – Beneteau: 20 000 persons
• Shipbuilding - military defense : Naval Group (TO: 1 billion € in 2016)
• oil & gas industry: about 30 000 persons
• 5th strongest world power (US, China, Japan and Germany)
• 5th strongest military power (US, China, India, ex æquo with UK)
• France is the 2nd largest maritime domain in the world after USA
(Source: baromètre LCL and GICAN June 2017)
Exports
Cruise ships: 95%
Defense: 40%
Leasure: 70%

MAIN FRENCH
SHIPYARDS
• STX France – future
FINCANTIERI St Nazaire
• Naval Group (ex.DCNS)
• PIRIOU/KERSHIP
• OCEA
• CNM
• SOCARENAM
1.2.2018 Property of Belon Trade Consulting 4

Geographically
Direct employment
Number of companies
working in the industry

Maritime business in France
Property of Belon Trade Consulting
66
Shipowners – Carnival, RCCL , MSC, French Navy, …
French shipowner - Bourbon off-shore -CMA CGM Marseille Head Office - Louis Drefus
armateurs - Ponant SA - Setaf-Saget – Unishipping -EVERGAS/JACCAR
Cruise and passenger shipbuilders
STX St Nazaire
PIRIOU
CMN : Constructions mécaniques de
Normandie
Neopolia
Clusters
Cluster maritime Français (national,
incl. shipping and harbor issues)
GICAN (national)
Néopolia (local: St Nazaire area)
BPN (local: Bretagne area)
PNM (local: Mediterranean area)
Marine consultants
AMERALYS : Interior fitting management support
EUROTECHNIA : Project management support
Emobilia: assistance to settle down in France
Oil & Gas
TOTAL SA
MAUREL et PROM
PERENCO
Other shipbuilder type
Leasure boats:
Beneteau Jeanneau
Mega yatchs:
Ocea et Couach
Defense – Military technologies
Shipbuilders: Naval Group, KERSHIP,
SOCARENAM, CMN
Others: MBDA, Airbus, Thales,
Technicatome
International
Institutions
Business France
Invest in France
Finnish Embassy
CCIR International
Ship repair yards
Chantiers navals de Marseille
Damen-France, Clemessy-
Services-Marine, Piriou,
Socarenam
Big Turn Key Contractors
Leroy VINCI CONSTRUCTION
SOFRESID
Eiffel Industrie Marine
GESTAL
AD Industrie
SNEF
NAVTIS
CNIMDesigner &
engineering
STX Solutions
AD Industrie
Segola Technologies
SHIP-ST
ALPHA TECHNIQUES
Arco Marine
Institutions
State, region,
department,
research institutes
etc…

Exhibitions and delegations in France
Fair/Exhibition Description Dates Where
Navexpo
(every year)
« Live » Exhibition on the
atlantic shore
15-18 May 2018 Lorient
Euronaval
(every other year)
shipbuilding / Military and
defense fair
23-26 Octobre Paris Le Bourget
Euromaritime 2019
(every other year)
Shipbuilding industry fair for
subcontractors
January/February 2019 Paris Porte de Versailles
Delegation Description Dates Where
Finnish delegation to
France
Big and medium size
companies delegation
18-20 March France: St Nazaire – Paris
- Marseille
French delegation to
Navigate fair
SME’s looking for partners 16-17 May Turku

Finnish Business delegation in France
18-20th of March
Sunday 18th of March: arrival in St Nazaire
Monday 19 th of March
Morning: Visit of STX France St Nazaire
Afternoon:
• Conferences
• B t B meetings: presence of GICAN and NEOPOLIA clusters
Request to meet important companies and local shipyards is possible!!!
Tuesday 20th of March
Morning : Visit of another French shipyard
Afternoon : flight back to Finland or Germany

STX France, the new
configuration, requirements and
warnings

STX France  Fincantieri France
• Specialist in Cruise ships or big sized ship for the French
Navy (working as subcontractor for Groupe Naval ex
DCNS).
• Customers: MSC, RCCL-RCI and energy park managers
such as DONG energy
• Staff: 2.600 employees and rising all the time
• Subcontractors: over 5.000 companies
• Turn over 2016: 1.356 Million €

Fincantieri – St Nazaire
Fincantieri
St Nazaire Shipyard
French State
Fincantieri France?
France Solutions
France Services
Shipbuilding site - Big size ships
Maintenance
Engineering and design
50 % 33,3 %
Sister
companies
Orders of big sized
cruise ships till 2026…
Design for STX France
but not only
Maintenance of the
French Mistral ships
Naval Group
Ex DCNS
+1 %
French group of
compagnies Employees
≈3 %
MRE- Electrical sub station & jackets
≈2 %≈10 %
Source: Le marin November 2017

What impact will the new configuration have?
 Negotiations and adaptation are take place between the partners in order to set the new values and
new process. No important decision concerning purchasing will occur during this period, everything is
going to be very slow.
 Fincantieri has promised not to change much and still does not hold the majority for now.
 The French states still hold 33% of the shares and will keep the VETO right if needed forbidding
Fincantieri to eliminate a competitor or delocalize the production in Italy or China.

Order book for Cruise ships
Types of ship Owner Code name Confirmed/options Characteristics Delivery dates
Oasis series RCCL/RCI B, C34 confirmed 360 m
6360 passengers
2700 PAX cabins
April 2018- mid
2021
Meraviglia /
plus series
MSC cruises E,F + G,H 34 2 + 2 (+17 m +200
cabins) confirmed
315,83 m
5714 passengers
2244 PAX cabins
Summer 2017 …
2020
Edge class RCCL/RCI J,K + L,H 34 4 confirmed + 1
option
300 m
2 900 passengers
1 450 cabins -
Autumn 2018 …
2022
World class MSC cruises WC (no code yet) 1 + 3 options 335 m
5 400 passengers
2 750 cabins
Mid-2022…
2026

Order book for other projects
Property of Belon Trade Consulting 1410/02/2016 14
Period of time Type of project
Order in July 2015 to be
delivered in 2016
Confirmed order for 2 offs-shore electrical substations – P34 type
Customer: unknown but from Northern Europe
2017-2020 Future expected projects: more than 20 off-shore maritime renewable energy
project are quoted per year : either jackets or entire substation. Delays are caused
by late decisions of the government to implement offshore wind farms
2015 – 2020 Maintenance contract with DCNS: 3 BPC military ships (helicopter carriers built in St
Nazaire)

Fincantieri and Naval Group
Property of Belon Trade Consulting 152/1/2018
Naval Group (Ex.DCNS) is the military shipyard the
“famous” BPC (Russian helicopter ships…) were
under their order book but have been build in St
Nazaire because of their big size.
Fincantieri and Naval Group already has a common
agenda and range of product such as the Horizon
frigates for the Canadian Navy.
Fincantieri is becoming partners with the French
companies on 2 sites one for the military and St
Nazaire Cruise ship.

MILITARY SHIP YARD
• Main activities: shipbuilding for defense and military
• Owners: state 64% - Thalès: 34%
• Services for naval shipyards and bases.
• Civil nuclear engineering
• Marine renewable energy
• Where: all over France and worldwide presence.
• Staff: 13 000 persons
• Annual revenues: 2,6 billon €
Web site : www.naval-group.com

Naval Group (ex. DCNS) – MILITARY SHIP YARD
• Owners: state 64% - Thalès: 34%
17
• Privately owned
• Group: Chantiers Piriou, Piriou Naval Services, Piriou Ingénierie,
Ateliers Normand, WAS, SEAS, BOPP, Seatech Engineering.
http://www.kership.com/
PIRIOU
• Annual revenues: 2,6 billon €
• Annual revenues: 122 million €
KERSHIP = Naval Group + PIROU

18
Shipbuilding: Coastal surveillance, Passengers transport, environment,
Motor/Mega Yachts, Aluminum and composites based boats.
Presence in the world (see map) OCEA’s sales and marketing presence cover about
80 countries in Europe, the Middle East, Africa, Asia, Latin America and Central
America.
http://www.ocea-ssm.com
• 290 employees
• 4 production sites
• 95% of the turnover at the export market
• 15 to 20 vessels delivered per year
• Staff: 227 persons
• Turnover: 56 Million € (2016)
OCEA

CMN - Constructions mécaniques de Normandie
• Naval Vessels up to 95 m (Combattante, Vigilante, Interceptors, Trimaran for maritime
surveillance and Corvettes),
• Combat Systems Integration Capabilities and Integrated Mast,
• Logistic and Training Support,
• Supply Vessels and Work Boats,
• Refit, Repair and Overhaul of naval vessels and yachts.
• Hydrokinetic turbines (Ocean Renewable Energy),
• Renewable Energy Platform Assembly.
19
• Where: Cherbourg
• Staff: 400 persons
• Turnover: 27,6 Million €
CMN is part of Privinvest Shipbuilding Group. Privinvest Shipbuilding is state of the art construction and
design facilities in the Mediterranean, the Arabian Gulf, Germany, France and the United Kingdom have
designed and produced some of the world’s most successful and recognized vessels in the Naval,
Commercial Vessels and the Luxury Super Yacht markets. The group is composed of 6 modern shipyards
(employing 2,500 people), has 350 years of cumulated experience and has delivered more than 1,600
vessels worldwide.
The group is composed of: German Naval Yards KIEL, NOBISKRUG, Isherwoods, Lindeneau
https://cmn-group.com/

NAVTIS
• Engineering, assembly and repair yard
• Main shipyard in Brest: ship repair and conversion
• Working sites in Brest, Cherbourg, Toulon, Saint-Nazaire
• Acquisition in Lorient (open in September 2015) but not doing so well, looking to close
the Lorient site in the next months
20
SOCARENAM
• Shipbuilding: Fishing ships, service ships, special projects (defence)
• Ship repair and retrofit
• Working sites in Calais, Dunkirk.
Staff: 200 persons
Turnover: 19,4 Million €
Staff: 200 persons
Turnover: 20 Million €

Clemessy Services (ex.EIFFEL INDUSTRIE)
• Engineering, assembly and repair yard
• Main shipyard in Brest: ship repair and conversion
• Working sites in Brest, Cherbourg, Toulon, Saint-Nazaire
21
Staff: 2300 persons
Clemessy Services is part of Eiffage group a major land
construction group in France operating in 70 countries
worldwide
Staff: 63 164 persons
Turnover: 14 billion €
http://www.clemessy-services.com/
Divided in different industry branches :
• Clemessy Services Marine: Marine
• Clemessy Services Barep : fluids specialist
• Clemessy Services Turbomachines: machinery maintenance
• Clemessy : electricity and mechanics
• Clemessy Motors : engines for turning machinery
• Secauto: instruments and drives

Chantiers Navals de Marseille
• Ship repair and maintenance are the core business of the CNdM yard with a strong expertise and
skilled workforce in these fields.
• Chantier Naval de Marseille (CNdM) is part of Holding Genova Industrie Navali (GIN) together with
other companies operating in several segments of the shipping market.
• CNdM is a specialist in repair and refurbishment operations on cruise vessels, specific works on pods or
modifications for compliance with new rules or greener/fuel-efficient operations. These works have
been a routine part of the yard’s operations for many years.
Specialist in Cruise Ship maintenance and repair!
22
Genova Industrie Navali
Staff: 1 200 persons
Turnover: 250 M€

Chantiers Navals de Marseille
Last cruise and passenger ship maintenance and repair projects
 Costa Pacifica, cruise vessel : Launched December 2017
 Aida Blu, Costa Magica, MSC Orchestra cruise vessels : Launched November 2017
 Costa neoClassica, cruise vessels: October 2017
 Celebrity Constellation, cruise vessels: June 2017
23
FORME 10
 The dry-dock No.10 is one of the world largest facilities.
 It can accommodate the new generation of mega ships up to 465 m.
 From September 2016
http://www.cndm.eu/

CNIM: Constructions industrielles de la Méditerranée
Industrial systems: Innovations
 The CNIM Group designs and produces turnkey industrial solutions with high
technological content, it offers unique research / expertise services.
Specific project, here under SEA LANDING SYSTEMS
 THE L-CAT®, THE HIGH SPEED SEA CONNECTOR FOR AMPHIBIOUS OPERATIONS
https://cnim.com/
24Property of Belon Trade Consulting 24
Where: HQ in Paris area
Staff: 2800 persons
30% in shipbuilding

MARITIME RELATED CLUSTERS OR ASSOCIATIONS
Cluster maritime français
http://www.cluster-maritime.fr
NEOPOLIA MARINE
http://www.marine.neopolia.com/
BRETAGNE POLE NAVAL INDUSTRIAL CLUSTER
http://www.bretagnepolenaval.org/?langue=en
Groupement des Industries de Construction et Activités Navales
http://www.gican.asso.fr/
POLE NAVAL DE MEDITERRANNEE
http://www.polemermediterranee.com/Le-Pole-Mer-Mediterranee

PONANT
First Cruise company interested in Arctic areas
They are launching the first world's first luxury
icebreaker cruise ship beginning of 2021.
4 ships are to be build by FINCANTIERI at their sister
company VARD:
• ship yard in Norway Søviknes
• hull is manufactured in Romania

Oil & Gas News
Rio de Janeiro - Petrobras and Total announce today that they have finalized a decisive
milestone in the realization of their Strategic Alliance, signed in March 2017, with the
completion of the following transactions:
• Transfer from Petrobras to Total of 35% of the rights, as well as the operatorship, of the Lapa field in
Block BM-S-9A in the Santos Basin pre-salt, alongside Shell (30%), Repsol-Sinopec (25%) and Petrobras
(10%). The Lapa field was put in production in December 2016, via the 100,000 barrel per day capacity
Cidade de Caraguatatuba FPSO.
• Transfer from Petrobras to Total of 22.5% of the rights of the Iara area, which comprises the Sururu,
Berbigão and Oeste de Atapu fields in Block BM-S-11A in the Santos Basin pre-salt, operated by
Petrobras (42.5%) alongside Shell (25%) and Petrogal (10%). Production in Iara is expected to start in
2018 through the 150,000 barrel per day capacity P-68 FPSO in Berbigão-Sururu fields, which will be
followed by a second FPSO in 2019 in the Atapu field.
• The consideration for the above transactions amounts to US$1.95 billion, including closing
adjustments. This amount does not include US$ 400 million that can be triggered by Petrobras to carry
a part of its investment share in the Iara development fields and contingent payments. All conditions
preceding the transfers were fulfilled, in particular the granting of operation and installation licenses by
the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) in order for Total to
become the operator of the Lapa field.

Posted workers and tax issues…
Things you need to know

Posting workers
Respecting the French employment law means
 You must have a legal representative
 You must produce an important list of documents showing that your workers are well
treated and well covered socially speaking.
 The yard do not automatically require all the papers, only the minimum
 All this takes time and you must prepare the paper work at least 1 or 2 weeks prior
arrival
What is new
 A1 is nowadays compulsory to have, this can take months to get, apply straight away for
all the workers you suspect might go abroad
 Medical certificate of aptitude is very highly recommended, meaning that the workers
must go to their doctors before they are coming to France to get this certificate.

Long term presence in France
Tax authorities
 There is a European agreement in EU , though you still have to declare your
activity in each country where you have production or service
 In France, you can work about 12 months + 12 months without registering in the
French system
 After that you must have a permanent establishment, this will generate extra
costs :
 Registration costs
 Preventive tax to the company on every worker’s salary
 Activity tax on the profit generated in France

Marie-Zoé Belon-Laitinen
Pyydyskalliontie 25
20660 Littoinen
Finland
Tel: +33 6 14 17 23 31
Tel: +358 405 271 939
marie@belontradeconsulting.fi
www.belontradeconsulting.fi

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France_Shipbuilding market_seminar 2018