World Class Shipbuilding And Repair

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World class shipbuilding and repair1

Irving Shipbuilding Today

Current Statistics 1,300 employees at Irving Shipbuilding– 1,100 at Halifax Shipyard– 50 at Shelburne Ship Repair– 170 at Fleetway & Oceanic3

Current Projects Constructing 9 Hero-Class Patrol Vessels– Mid-Shore Patrol Vessels for Canadian CoastGuard– 5 of 9 vessels currently underway– Expected completion in 20144

Current Projects FELEX Mid-Life Extension Program– Major refits on 7 Halifax-Class Frigates– HMCS Halifax & HMCS Fredericton currently inyard– Expected date of completion 20185

Current Projects Commercial & Offshore Repair– Bulk carriers MV Spruceglen, MV Atlantic Superior &MV Solarium recently completed– Ferry MV Blue Puttees in Nova Dock for repairs (MVHighlanders recently completed)– Grand Banks Oil rig recently refit and repaired atWoodside Industries6

NSPS - The OpportunityNational Shipbuilding Procurement Strategy Announced in June 2010– 35 billion invested in Federal Fleet over next 30years– Competitive, fair, open & transparent process –using fairness monitor & independent third partyexperts 2 shipyards for building large vessels werechosen– 1 shipyard for combat vessels– 1 shipyard for non-combat vessels7

Bids Submitted July 21, 20118

October 19, 20119

NSPS – What’s Next6 Months into a 30 Year Process!2011StepsCompleteNegotiate Umbrella Agreement Negotiate AOPS ContractAOPS Design / EngineeringUnderwayAOPS Production (6 vessels)CSC Design / EngineeringCSC Production (15 vessels)204110

Projected Workforce Growth Conference Board of Canada (May, 2011)estimates (with direct, indirect and inducedeconomic impacts):– 8,400 new Nova Scotia jobs annually on average– 11,500 jobs in Nova Scotia at peak production– 12,400 new jobs annually on average acrossCanada– 16,000 jobs across Canada at peak production11

ISI Workforce Growth Strategy Current models have ISI growing by 1,500direct jobs over 8 year period – our strategy:1. Grow at Home Work with local community colleges &universities to build next generationshipbuilders2. Bring them Home Repatriate Atlantic Canadians who havemoved out of the region for employment3. Make it Home Bring some of the world’s shipbuilders toCanada to continue their career12

ISI Supply Chain 1,000 Today60 QE Suppliers 23M invested30 Western Suppliers 6.2M invested115 NB Suppliers90 PE Suppliers7 - 100K / 27 - 10K 20 NL Suppliers2 - 1M / 4 - 100K 8 - 1M / 30 - 100K 135 ON Suppliers 14.2M invested* Suppliers 2009/2010630 NS Suppliers37 - 1M / 21 - 500K - 1M13

Early Days for NSPS & Supply Chain First project will be Arctic OffshorePatrol Vessels for the RCN– Requirement must first be fully defined sothat ISI understands the Navy’s scope ofwork and associated deliverables– A contract must be then be negotiatedwith Canada– Suppliers selected and subcontractsnegotiated14

Supply Chain Will Grow Welcome interestfrom new supplierswww.irvingshipbuilding.comClick on For Suppliers . link On-line Supplier Registry live– 1,200 businesses registered to date– Supplier provides current contact information &indicates categories of interest– Identify relevant suppliers to receive Requests forInterest or Requests for Proposal related tospecific project requirements15

Supplier Information Forums Irving Shipbuilding will host a seriesof information forums– Invites will be issued to all currentand newly registered suppliers– On-line sign up for forums willdetermine attendee count andlogistics– Will take place once contract detailsare more finalized16

Selecting Suppliers Ensure goals of suppliers are alignedclosely with ISI and Canada’s NSPSobjectives of:– Build the Navy’s combat vessel fleet– Provide best value to Canada– Meet our 100% Industrial andRegional Benefit commitments– Help build a sustainable marineindustry in Canada17

Supply Chain Principles1.2.3.4.5.Business operations be understood,services provided effectively & efficientlyto lower costs for our internal and externalcustomersProcesses & associated data is electronicend-to-end, standardized, controlled &documentedSupplier relationships are aligned tosupply chain principlesRequirements from Federal Governmentimpact supplier selectionContract managers operate withincompany’s code of ethics in all businessdealings18

What Can You Do To Prepare?1.2.3.4.5.Communicate clearly what yourenterprise has to offerUnderstand how what you offer canadd value to ISI’s supply chainUnderstand ISI’s supply chainprinciples – ensure your company isaligned with themParticipate in information forums andevents, as they take placeRegister in our on-line supplier portal19

World class shipbuilding and repair20

National Shipbuilding Procurement Strategy Announced in June 2010 – 35 billion invested in Federal Fleet over next 30 years –Competitive, fair, open & transparent process – using fairness monitor & independent third party experts 2 shipyards for building large vessels were chosen –1 shipyard for combat vessels

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such as Sumitomo Heavy Industries (with 5 vessels on order in June 2012).4 Figure 2. Ratio of shipbuilding sales to GDP 1975 - 2010 Note: Shipbuilding data are for newbuilding and repair sales of members of the Shipbuilders’ Association of Japan. Data are for fiscal years. The Japan

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Nov 05, 2019 · of new-ship construction. It excludes other activities typically funded from the Navy’s budget account for ship construction. Including nuclear refueling and all other costs associated with the Navy’s shipbuilding budget would add 2.1 billion to the Navy’s average annual shipbuilding costs under the 2020 plan, CBO estimates. Table 1 .

Right: Ingalls Shipbuilding’s seventh annual “5K on the Causeway” raised 20,000 for Mississippi Special Olympics. Newport News Shipbuilding 1,100 units of blood donated by employees through company-sponsored American Red Cross blood drives. Ingalls Shipbuilding Seventh Annual 5K on the Causeway raised 20,000 for Special Olympics

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shipbuilding and ship repair industry has been relatively stable. Appropriations for construction of new military ships showed a modest increase (6%) from 2000 to 2006, but declined by 35% over the last year.5 Between 2000 and 2004, employment within the sector fell from 102,000 to 92,400.6