dolphin jul-aug06.pdf - Jurong Shipyard Pte Ltd

Business Reg. No.: 199908265G
Jurong Shipyard commemorated Singapore’s
41 st year of independence with a National Day
Observance Ceremony, attended by more than
3,000 employees and subcontractor workers, on
August 12, 2006.
MICA (P) 004/06/2006 July - August 2006
Honouring Singapore’s
41 st National Day
Commemorating Singapore’s independence with a solemn flag-raising ceremony and the singing of the national anthem.
Warmest welcome to Mrs Lim Hwee Hua, Minister of State
for Finance and Transport.
Joining the yard in celebration was Mrs Lim Hwee
Hua, Minister of State for Finance and Transport,
who was the Guest-of-Honour at the ceremony.
Also in attendance were top management from
Jurong Shipyard, parent company SembCorp
Marine, and key personnel from the SMEEU
(Shipbuilding and Marine Engineering Employees
Union) Jurong Shipyard branch.
Commending the yard for its key contributions
towards Singapore, Mrs Lim said, “Together with
your parent company SembCorp Marine, Jurong
Shipyard has played a crucial role in boosting
Singapore’s global reputation in marine
engineering and as a premier ship repair centre.
I am pleased to note that due to your dedication
and hard work, Singapore is today a world leader
in rig building, with a market share of over 80%
for new jack-up rig orders.”
Jurong Shipyard’s employees and subcontractors at the
ceremony.
Mrs Lim observed that Jurong Shipyard’s progress
is in many ways a reflection of Singapore’s
growth. This is evident from the yard’s continuous
drive to evolve and capitalise on new growth
opportunities. “Jurong Shipyard has consistently
developed high quality and high value-added
services for customers by growing from the
traditional ship repair and shipbuilding business
into new markets like ship conversion, rig building
and offshore engineering. Today, Jurong Shipyard
services customers from many different countries,
and has grown to become a world-renowned
brand name for excellence,” she added.
Jurong Shipyard’s Managing Director Mr W. S.
Wong credited the yard’s good performance to
the people, who are the “key driving force behind
our progress”. He also emphasised the need for
continuous upgrading and improvement to stay
at the forefront of the competition.
“As we progress into the next growth phase, we
must not let our present success lull us into
complacency. Instead, we must remain vigilant
to anticipate and prepare for new challenges in
the horizon. Let us – management and employees
with the support of our Union – continue to work
hand-in-hand to forge an even brighter future
together,” he urged.
In the usual tradition, awards were presented to
recognise recipients from the yard, subsidiaries,
and subcontractor companies who have made
significant contributions in raising safety and
productivity standards. A total of six awards were
given out, including four Safety Awards and two
Innovation Awards (see pg 9 for more details).
Mrs Lim Hwee Hua and representatives from SembCorp Marine and Jurong Shipyard singing a birthday song to Singapore.
Interacting with Jurong Shipyard’s union representatives and
employees.

Yard News
Washington Voyager Upgrades Capabilities
Washington Voyager, a 39,795 dwt US-flagged
tanker belonging to alliance partner Chevron
Shipping Company LLC, made a special stop at
Jurong Shipyard for major repairs and overhaul
to enhance its performance capabilities.
Washington Voyager all set to perform after its repairs and upgrading.
Repair Superintendent Mr Dave Wall presenting a
commendation certificate for a job well done.
The 198.51m x 29.32m x 15.24m tanker
underwent a 60-day operation, from May 7 to
July 1, 2006. The project’s scope involved
drydocking, hull and underwater works,
comprising repair of sea chest, bow thruster
tunnel, deck fire main pipes, and water ballast
tanks, hull cleaning, blasting and painting
of about 700m 2 , along with recoating of the
CAPAC system.
Despite the fast-track nature of the repairs, no
compromises were made when it came to safety.
The yard's comprehensive safety and quality
management systems, involving daily meetings
and weekly award presentations, ensured that
high standards were consistently delivered. The
zero-incident repair success of Washington
Voyager is further evidence of the seamless cooperation
and synergistic partnership that exists
between Chevron Shipping and Jurong Shipyard.
Petrobras & MODEC Yard Visit
Part of the hull repairs included deck steel
protection for hydraulic tubings totalling 9,300kg,
grit and hydro blasting of water ballast tanks
totalling 64,000m 2 , as well as overhaul of under
bridge, lifeboats, davits and hose handling cranes.
Machinery and electrical repairs were also
performed on the vessel. Jurong Shipyard
undertook the modification of fuel handling room
piping and diesel alternator survey, as well as
the overhaul of cargo pumps, ballast, main gas
turbines, fan systems, and motors.
The yard also carried out port and starboard
riser conduit replacement, renewal of propeller
blade seals, brake linings, expansion joint, and
COT hydraulic tubings in 15 tanks, and rendered
assistance to the owner’s specialist in the repair
of damaged insulated spacers in the motor
propeller room.
Petrobras and MODEC VIPs with Jurong Shipyard’s senior management and project team members.
Jurong Shipyard was honoured to host
customer partners from Petrobras SA and
MODEC International LLC when they visited
the yard on August 30, 2006 to view
the conversion progress of FPSO Cidade do
Rio de Janeiro MV 14.
The yard’s senior management, including
Chairman Mr K. K. Tan, and Managing
Director Mr W. S. Wong, were on hand to
receive the delegation, which included top
management visitors such as Mr José Sérgio
Gabrielli de Azevedo, President of Petrobras,
and Mr Shashank V. Karve, President and
CEO of MODEC International.
Jurong Shipyard’s Chairman Mr K. K. Tan exchanging
greetings with Mr José Sérgio Gabrielli de Azevedo,
President of Petrobras.
The vessel before her overhaul.
02
After being briefed on the project’s
developments in a presentation session,
Petrobras and MODEC representatives went
on a vessel tour. Besides visiting key
installations and facilities, the delegates also
Mr W. S. Wong, Jurong Shipyard’s Managing Director
briefing VIPs during the vessel tour.
engaged in a meaningful time of interaction
with Jurong Shipyard’s project team members.

Yard News
Complete Overhaul for Sierra
Imbued with new vitality, a 125,091 dwt crude
oil tanker measuring 265m x 42m x 22m from
USA’s leading ship operator SeaRiver Maritime
Inc. departed with a fresh lease of life on July 29,
2006 after a major overhaul in Jurong Shipyard.
Formerly known as Kenai when it arrived on April
2, the vessel took on the new name – Sierra –
after undergoing an extensive three-month repair
operation in the yard. Part of the yard’s repair
works comprised blasting and coating jobs at
various locations, including the ballast tank,
forepeak tanks and cargo tanks bottom area.
The repairs also included overhaul of high
pressure and low pressure turbines, as well as
valves in the cargo tanks, engine room and pump
room. Besides the renewal of hydraulic valves
actuators, windlass, winches brakes, bunker lines
and cow pipings, the refitting also involved the
retubing of boilers and the replacement of dresser
couplings in tank and deck
pipings.
To enhance her performance
and safety features, new
equipment and systems were
put in place, including an ERAS
(Emergency Hydraulic Rudder
Arresting System), a CO 2 system
and an intelligent fire detection and
alarm system in the machinery
spaces and pumproom. A
steering gear room and new
passageways were also
installed onboard.
The yard also undertook the fabrication and
installation of auxiliary and incinerator diesel
oil tanks, as well as ballast tank vents. The
vessel was also outfitted with new installations
including light masts, a 25m length boom, a
hose-handling crane, as well as a containerised
1,250kw diesel generator and containerised
incinerator on stack deck.
Other significant aspects of the job included
modifications to the galley and pumproom,
upgrading of the ODME (Oil Discharge Monitoring
Equipment) in the cargo control room, and deck
wire replacement. The wheelhouse was also
expanded and outfitted with state-of-the-art
navigation, propulsion and communication
equipment.
Completion on target – Mr William Jenkins, President of SeaRiver Maritime Inc, presenting Mr Lee Yeok Hoon, Jurong
Shipyard’s Executive Director, the final milestone plaque to mark Sierra’s incident-free project completion.
Jurong Shipyard’s unwavering commitment to
safety has won it many return customers. One
of them is SeaRiver Maritime Inc, which entrusted
its tanker S/R Baytown to the yard once again
after a successful round of repairs in 2003.
Return of Baytown
including blasting and coating of shipside and
cargo tanks, main engine overhaul, the installation
of a new deck crane onboard, the withdrawal of
tailshaft and the renewal of winches brake lining.
Repair Superintendent Mr Charles F. McGee said
that Jurong Shipyard’s outstanding safety record
and commitment to excellence were key factors
for S/R Baytown’s return to the yard. “We have
had very good success with Jurong Shipyard as
As a result of the excellent partnership between
SeaRiver Maritime and Jurong Shipyard, the
repairs were well on track and on schedule. The
yard’s comprehensive quality and safety
management systems ensured that the project
was incident-free and that all aspects met
and exceeded the owner’s expectations.
S/R Baytown after its repairs.
it is able to meet our stringent expectations of
safety and quality.”
Safety awards presentation.
The 58,643 dwt S/R Baytown arrived on July 27,
2006, two days before the departure of her fleet
partner Sierra, which had earlier undergone a
major overhaul in the yard. The vessel’s refitting
operation encompasses drydocking repairs,
S/R Baytown meets fleet partner Sierra in the yard.
Scheduled for completion in early September,
the project has made good progress so far. “The
repair has gone very well and the schedule is
right on track,” said Mr McGee. “There has been
tremendous co-operation between the teams
and we are looking forward to further building
on our relationship and friendship.”
03

Feature
Laeisz Takes Delivery of First 2,6
Reederei F. Laeisz (RFL), a subsidiary of leading
German shipowner Laeisz Shipping Group, has
taken delivery of Pontremoli, the first of two
2,646 TEU newbuild containerships on order
with Jurong Shipyard, on August 1, 2006.
The delivery came shortly after Pontremoli’s
naming ceremony on July 24, which saw Lady
Sponser Mrs Ute Schues performing the
christening honours, together with her husband
Mr Nikolaus Hans Schues, RFL’s Chief Executive
Officer. Other distinguished guests who joined
Jurong Shipyard’s management and staff in
celebration included Mr Nikolaus Walter Schues,
RFL’s Chairman, Dr Thomas Ritter, Managing
Director of Hamburgische Seehandlung,
Mrs Ute Schues receiving a scroll of blessing from the good
luck lion.
Guest-of-Honour and Lady Sponsor Mrs Ute Schues performing the ribbon-cutting during the christening of Pontremoli,
witnessed by her husband Mr Nikolaus Hans Schues, Chief Executive Officer of Reederei F. Laeisz, and Mr Lee Yeok Hoon,
Executive Director of Jurong Shipyard.
and Mr Tan Chin Hee, Executive Director of
Pacific Carriers.
RFL’s Chairman Mr Nikolaus Walter Schues said
in his speech that the naming of Pontremoli,
RFL’s first ship from Jurong Shipyard and
Singapore, marks “the beginning of a very long,
friendly and prosperous” partnership. He also
complimented the Jurong Shipyard team for a
good job done and expressed his optimisim
about the future of the shipping industry.
Mr Lee Yeok Hoon, Jurong Shipyard’s Executive
Director, extended his heartfelt thanks to Reederei
F Laiez and stakeholder partners for awarding
two containership building contracts to the yard,
as well as to employees for their hard work and
dedication. Looking forward, Mr Lee also
expressed his hope for the relationship to further
grow and strengthen in the long-term.
Pontremoli, built based on a proprietary design
developed by Jurong Shipyard’s inhouse
engineering team, is the sixth of ten “Jubilee
Class” series vessels to be constructed by the
yard. Measuring 213m x 32.2m x 16.5m,
Pontremoli has a homogeneous container-carrying
capacity of 1,980 TEU at 14 tons per TEU and
a high speed of up to 23 knots. Equipped with
400 reefer containers, the vessel is able to
Cause for celebration: All smiles at the naming of Pontremoli.
04

Feature
466 TEU Containership Pontremoli
Mrs Ute Schues proudly displaying the scroll of blessing to mark smooth seas and prosperous voyages for Pontremoli.
Here’s to Pontremoli’s success! Mr Nikolaus Walter Schues,
Chairman of Reederei F. Laeisz, and Mr Lee Yeok Hoon
leading the champagne toast.
accommodate 1,688 TEU on deck and 958 TEU
in the hold. Its hull has been optimised to
minimise propeller-induced vibration for
operational performance.
Upon its delivery, the vessel underwent a name
change to Gulf Bridge after securing a charter
with Japanese shipping company K-Lines, and
is presently serving the company’s Middle Eastern
trading routes.
Exploring the ship’s functions during the tour onboard.
Commemorating a successful partnership.
With the sailaway of Pontremoli on August 2,
the yard’s containership building track record
includes six “Jubilee Class” vessels, comprising
four units of 2,646 TEU container vessels and
two units of 2,586 TEU containerships delivered
between 2004 and 2006 to-date. Four more
units of 2,646 TEU container vessels are currently
under construction in the yard.
Pontremoli undergoes a name change to Gulf Bridge after securing a charter with K Lines.
05

Around the Yards
Achievement of Rig Building
Production Milestones
Jurong Shipyard achieved two rig building
production milestones in the month of July – the
keel laying and the steel striking of the yard's
second and third jack-up newbuilds respectively.
Delivery of
WilPower by
PPL Shipyard
A simple ceremony was held on July 12, 2006
to mark the laying of the first steel block for the
second rig, while a strike steel ceremony was
held a few days later on July 15 to commemorate
the first steel cut for the third rig.
These two rigs are part of a series of four Baker
Marine Pacific Class 375 deep drilling offshore
Commemorating the keel laying milestone of the second
newbuild jack-up rig.
jack-up rigs which were earlier contracted to
Jurong Shipyard by Petrojack ASA of Norway.
Applauding the steel striking of the third jack-up rig unit.
Mauá Jurong to Build
US$550M Gas Platform
Mauá Jurong, Jurong Shipyard’s sister yard in
Brazil, has secured an Engineering, Procurement
and Construction Contract worth US$550 million
in July 2006 from Companhia Mexilhão do Brazil
(CMB), a project partner of Brazil’s national oil
company Petrobras S.A, for the construction of
PMXL-1, a fixed gas production platform to be
installed offshore Brazil.
Representing the largest single contract since
the yard’s incorporation in 1999, the project
involves the construction of a platform,
comprising a 12,000-tonne deck and a Natural
Gas Production Plant designed to produce 15
million cubic metres per day. The topsides deck
will be seated on a 180-metre tubular structure
jacket of 10,500 tonnes duly piled to the seabed
through 3,150-tonne tubular steel piles of up
to 120 metres long.
The jacket and piles are to be fabricated by
Mauá Jurong based on the owner’s furnished
design, while the topside deck and process
plant will be purpose-designed by the yard in
conformance with the front-end engineering
design as provided by the owner.
Management and project personnel sharing the joy.
Artist’s impression of the Mexilhão gas processing platform.
Construction of the platform will commence
immediately with delivery scheduled not later
than November 2008. Upon installation by
owner, Mauá Jurong will undertake the hookup
and commissioning of the platform at the
offshore location until “first gas” production
in Month 36 of the contract and assisted
operation up to Month 45.
PMXL-1 will be installed in Santos Basin offshore
Brazil as part of the country’s Mexilhão Natural
PPL Shipyard, Jurong Shipyard’s sister
yard, successfully delivered WilPower, the
first of four Baker Marine Pacific Class
375 (BMC Pacific 375) Deep Drilling
Offshore Jack-up Rigs ordered by Norway’s
Awilco Offshore ASA, on August 2, 2006.
WilPower is the second rig delivery of
a series of 15 BMC Pacific 375 jack-up
rigs under construction in SembCorp
Marine’s yards, with PPL Shipyard
building 11 units and Jurong Shipyard
constructing four units.
A proprietary design of PPL Shipyard,
the jack-up rig is capable of operating
in water depths of up to 375 feet and
is equipped to drill high temperature
and high pressure wells of over 30,000
feet. The jack-up has an extensive
useable deck space of 9,700 sq feet,
and is capable of carrying a large variable
capacity of 10,000 kips at 350 feet
water depth and of handling 50,000
kips of pre-load jacking.
Gas Production Project to expand its domestic
sources of natural gas. The platform will be
located at Mexilhão Gas Field, 165 miles off
Caraguatatuba town in the leading industrial
state of Sao Paulo, which has a water depth of
172 metres and a centralised network of
gathering pipelines from a set of neighbouring
producing fields. From PMXL-1, the produced
gas will be conveyed through submarine
pipelines to the shore gas processing plant and
forwarded to the National Pipeline Grid, both
operated by Petrobras S.A.
06

Around the Yards
Achievement of Rig Building
Production Milestones
Jurong Shipyard achieved two rig building
production milestones in the month of July – the
keel laying and the steel striking of the yard's
second and third jack-up newbuilds respectively.
Delivery of
WilPower by
PPL Shipyard
A simple ceremony was held on July 12, 2006
to mark the laying of the first steel block for the
second rig, while a strike steel ceremony was
held a few days later on July 15 to commemorate
the first steel cut for the third rig.
These two rigs are part of a series of four Baker
Marine Pacific Class 375 deep drilling offshore
Commemorating the keel laying milestone of the second
newbuild jack-up rig.
jack-up rigs which were earlier contracted to
Jurong Shipyard by Petrojack ASA of Norway.
Applauding the steel striking of the third jack-up rig unit.
Mauá Jurong to Build
US$550M Gas Platform
Mauá Jurong, Jurong Shipyard’s sister yard in
Brazil, has secured an Engineering, Procurement
and Construction Contract worth US$550 million
in July 2006 from Companhia Mexilhão do Brazil
(CMB), a project partner of Brazil’s national oil
company Petrobras S.A, for the construction of
PMXL-1, a fixed gas production platform to be
installed offshore Brazil.
Representing the largest single contract since
the yard’s incorporation in 1999, the project
involves the construction of a platform,
comprising a 12,000-tonne deck and a Natural
Gas Production Plant designed to produce 15
million cubic metres per day. The topsides deck
will be seated on a 180-metre tubular structure
jacket of 10,500 tonnes duly piled to the seabed
through 3,150-tonne tubular steel piles of up
to 120 metres long.
The jacket and piles are to be fabricated by
Mauá Jurong based on the owner’s furnished
design, while the topside deck and process
plant will be purpose-designed by the yard in
conformance with the front-end engineering
design as provided by the owner.
Management and project personnel sharing the joy.
Artist’s impression of the Mexilhão gas processing platform.
Construction of the platform will commence
immediately with delivery scheduled not later
than November 2008. Upon installation by
owner, Mauá Jurong will undertake the hookup
and commissioning of the platform at the
offshore location until “first gas” production
in Month 36 of the contract and assisted
operation up to Month 45.
PMXL-1 will be installed in Santos Basin offshore
Brazil as part of the country’s Mexilhão Natural
PPL Shipyard, Jurong Shipyard’s sister
yard, successfully delivered WilPower, the
first of four Baker Marine Pacific Class
375 (BMC Pacific 375) Deep Drilling
Offshore Jack-up Rigs ordered by Norway’s
Awilco Offshore ASA, on August 2, 2006.
WilPower is the second rig delivery of
a series of 15 BMC Pacific 375 jack-up
rigs under construction in SembCorp
Marine’s yards, with PPL Shipyard
building 11 units and Jurong Shipyard
constructing four units.
A proprietary design of PPL Shipyard,
the jack-up rig is capable of operating
in water depths of up to 375 feet and
is equipped to drill high temperature
and high pressure wells of over 30,000
feet. The jack-up has an extensive
useable deck space of 9,700 sq feet,
and is capable of carrying a large variable
capacity of 10,000 kips at 350 feet
water depth and of handling 50,000
kips of pre-load jacking.
Gas Production Project to expand its domestic
sources of natural gas. The platform will be
located at Mexilhão Gas Field, 165 miles off
Caraguatatuba town in the leading industrial
state of Sao Paulo, which has a water depth of
172 metres and a centralised network of
gathering pipelines from a set of neighbouring
producing fields. From PMXL-1, the produced
gas will be conveyed through submarine
pipelines to the shore gas processing plant and
forwarded to the National Pipeline Grid, both
operated by Petrobras S.A.
06

First Half 2006 Results
SCM News
SembCorp Marine, Jurong Shipyard’s parent
company, recorded a strong growth of 67.8%
compared to last year’s first half results. The
increase from $918.1 million in 1H 2006 to
$1,540.3 million 1H 2006 can be attributed
mainly to rig building, ship repair and shipbuilding.
Results announcement to analysts and media on August 1,
2006
Operating profits for the Group increased by
78.6% from $56.1 million to $100.3 million in
1H 2006. Group pre-tax profits increased by
69.7% from $75.1 million in 1H 2005 to $127.5
million. The increase is mainly from higher
operating margins from rig building and ship
repair business, gain on disposal of a subsidiary
company formed to own the first Baker Marine
Pacific Class 375 design jack-up rig, as well as
better contributions from associated companies
and joint ventures.
The Board of Directors recommended an interim
gross dividend of 3.5 cents per share, a 40%
increase over 2005’s interim dividend payout of
2.5 cents per share.
Turnover by Sectors
Sector 1H 2006 1H 2005
($m) ($m)
%
change
Ship Repair 257.7 231.2 11.5
Shipbuilding 117.0 99.0 18.2
Ship 342.4 402.5 (14.9)
Conversion
Rig Building 753.3 145.1 419.2
Others 69.9 40.3 73.4
Total 1,540.3 918.1 67.8
Financial Highlights
Items 1H 2006 1H 2005
($m) ($m)
%
change
Revenue 1,540.3 918.1 67.8
Pre-tax Profit 127.5 75.1 69.7
PATMI 98.4 58.4 68.5
Earnings per
Share (cents)
6.77 4.08 65.9
1H 2006
1H 2005
Turnover by Sectors Chart
0 1,000 2,000
$ million
Ship Repair
Shipbuilding
Ship Conversion
Rig Building
Others
Connecting with the investor community
Making a stop at PPL Shipyard to view its rig-building operations.
SembCorp Marine hosted a series of yard tours
to its subsidiaries Jurong Shipyard and PPL
Shipyard on July 10, 2006 as one of the key
highlights in Nomura’s Asian Equity Forum 2006
for overseas-based analysts and fund managers.
Mr K. K. Tan, SembCorp Marine’s Group President & CEO
and Jurong Shipyard’s Chairman, sharing his views.
Starting off at Jurong Shipyard, the investor
delegates visited the yard’s facilities, including
steel fabrication workshops and dry docks, to
see first-hand the ship repair, shipbuilding, ship
conversion, rig building and offshore engineering
activities in progress.
Moving on, the group made their next stop at
PPL Shipyard to learn more about the Group’s
jack-up design and building capabilities.
Delegates had the rare opportunity of touring
the jack-up rig “WilPower”, which was built
based on a design developed in-house by PPL
Shipyard. While onboard, the visitors also had
the chance to view the rig’s impressive structure
and unique features.
The yard tours were an eye-opening experience
for the delegates, who gained a deeper
Mr W. S. Wong, SembCorp Marine’s President & COO and
Jurong Shipyard’s Managing Director, explaining the yard’s
offshore and marine engineering operations.
understanding of the Group’s business
operations as well as its integrated rig building
and marine engineering capabilities. The event
also served as an excellent platform for
SembCorp Marine’s senior management to
foster closer links with its investor community.
07

SCM News
Shareholders Approve
SembCorp Marine’s Acquisitions
Minority shareholders gave the thumbs-up
for SembCorp Marine’s acquisitions of
SMOE Pte Ltd (SMOE), land and assets
belonging to Sembawang Bethlehem Pte Ltd
(SemBeth), and Cosco Corporation shares at
the Extraordinary General Meeting (EGM)
held on August 23, 2006.
Shareholders registering their attendance for the EGM.
Mr Ong Poh Kwee, SembCorp Marine’s Deputy President and Sembawang Shipyard’s Managing Director, briefing shareholders
on the acquisitions of SemBeth and SMOE.
The resolutions that were unanimously approved
by shareholders included:
• The acquisition of the entire equity interest
in SMOE from SembCorp Utilities Pte Ltd for
S$55 million.
• The acquisition of Sembawang Corporation
Limited’s entire equity interest in SemBeth,
including its assets and properties, for
S$128.73 million, comprising a cash
consideration of approximately S$11.75
million and the assumption of a net loan
amount of approximately S$116.98 million
• The investment of 110,400,000 shares in
Cosco Corporation (Singapore) Limited from
Seletar Investments Pte Ltd, a wholly owned
subsidiary of Temasek Holdings (Private)
Limited for S$120.336 million at S$1.09 per
share.
The acquisitions are in line with SembCorp
Marine’s strategic thrust to further grow and
expand its rig building and offshore engineering
business, and its traditional core business of
ship repair, shipbuilding and ship conversion.
Having acquired full ownership of SemBeth,
whose assets include 86 hectares of land,
workshops, quays and docks located along
Admiralty Road East and Admiralty Road West,
SembCorp Marine can now own and re-organise
resources to achieve optimal utilisation and cost
savings. It also allows the Group flexibility to
plan, invest, and execute infrastructure to meet
new business requirements and market demands.
The S$55 million acquisition of SMOE, a
recognised leader in the engineering and
construction of offshore production platforms,
floating facilities, and topsides production
SembCorp Marine’s Chairman Mr Goh Geok Ling (on right),
addressing shareholders.
modules, would further strengthen the Group’s
position as a leading player in the offshore oil
and gas sector.
With the acquisition of SMOE, SembCorp Marine’s
capacity has further expanded to include a 20.7-
hectare fabrication yard on SemBeth land located
adjacent to Sembawang Shipyard with clear access
to the open sea, and a 30-hectare fabrication
facility with 275 metres of water front in the Kabil
Industrial Zone on Batam island, Indonesia.
Meeting in progress with a turnout of more than 100 shareholders.
SembCorp Marine’s investment in Cosco
Corporation is also part of the Group’s strategy
to further grow the company’s marine and offshore
business in Singapore and China. SembCorp
Marine and Cosco Corporation are strategic
partners, with each holding 30% and 51% shares
respectively in Cosco Shipyard Group, a leading
ship repair and ship conversion group in China.
The strategic tie-up with Cosco Corporation and
Cosco Shipyard Group, which owns five major
shipyards strategically located in the key coastal
cities of Dalian, Nantong, Shanghai and Zhoushan
and Guangzhou, would enable SembCorp Marine
to enhance and increase its capacity to take on
more offshore projects.
08

Safety & Innovation
Launch of Permit-to-Work Safety DVD
To enhance employees’ understanding and
awareness of safety rules and regulations, Jurong
Shipyard recently produced a DVD (Digital
Video Disc) on the yard’s “Permit-to-Work”
(PTW) system, an essential part of the yard’s
safety control framework.
Event in progress.
Produced in-house by Jurong Shipyard’s Safety
& Fire Department, the DVD forms part of the
yard’s safety induction and training programme
for new personnel. It was officially launched in a
ceremony on August 14, 2006 by Guest-of-Honour
This year’s National Day Observance Ceremony on August 12 saw the following awards
being conferred to recipients for their significant contributions towards safety and productivity
improvements.
SAFETY AWARDS
Safety Recognition Award – Yard-appointed Chemist Team
* For upholding high standards of hotwork safety especially in confined
spaces and petroleum compartments onboard
a
Safety Recognition Award – Yard Environmental Control Team
* For steering dengue prevention and environmental improvement
initiatives.
Most Improved Safety Performance – Jurong Clavon
* For attaining zero-incidents for two straight years, a huge improvement
from their previous track record.
Million Man-hours Champion – Hong Rong Engineering
* For achieving 1.77 million man-hours without lost-time injuries across
a 17-month period – the highest record for subcontractors.
INNOVATION AWARDS
Gold Award – PF Section (Hatch Packing Quick Fitting Device)
* Enables safer and more productive installation of rubber packing
during containership hatch cover repairs, resulting in cost-savings of
about $100,000 a year
Silver Award – HP Section (Auto Pot Control Panel)
* Allows efficient control of grit flow and manpower usage during
blasting works, leading to estimated cost-savings of $90,000 a year.
Guest-of-Honour Mr Ho Siong Hin, MOM’s Commissioner
for Workplace Safety and Health, officiating the launch, with
Managing Director Mr W. S. Wong, and Chairman of SMEEU
Jurong Shipyard Branch Mr Tan Ah Chye.
National Day Awards
Joint Safety Drill with SCDF
Reflecting Jurong Shipyard’s close partnership
with the Singapore Civil Defence Force
(SCDF), a joint evacuation exercise and fire
drill was held on August 30, 2006. The
combined training exercise has further
strengthened the teamwork and co-operation
between the yard and SCDF, enabling swift
and efficient crisis response in the event of
an emergency.
Mr Ho Siong Hin,
Commissioner for
Workplace Safety and
Health, Ministry of
Manpower, Mr W. S
Wong, Managing
Director of Jurong
Shipyard, and
Mr Tan Ah Chye,
Chairman of SMEEU
Jurong Shipyard Branch.
The DVD touched on the safety precautions and
standard operating procedures under the “Permitto-Work”
system, which requires employees and
subcontractors to submit “Permit-to-Work” forms
and obtain management approval for potentially
hazardous jobs. These high-risk jobs include hotwork,
spray painting, work in confined spaces,
as well as the acquisition and use of chemicals
and hazardous materials.
During the event,
subcontractor
partners with
outstanding safety
performance were
also recognised, with
awards for “Best
Safety Performance
Group”, “Best
Improved Safety
Group” and “Best
Safety Performance
Supervisor” being
conferred to
deserving recipients.
Safety awards for subcontractors
with good safety performance.
Safety Mentoring
Scheme Kicks Off
The DVD launch event also witnessed
the initiation of Jurong Shipyard’s
“Safety Mentoring Programme for
Subcontractors”.
The safety mentoring programme is
targeted at subcontractor partners whose
safety standards fall below the yard’s
requirements. As part of the scheme, Jurong
Shipyard’s management and safety
personnel will provide guidance and
assistance to subcontractors in improving
their safety performance and culture. The
yard will also work together with the
subcontractors involved to help them
address related issues and challenges.
09

Safety & Innovation
Continuous Improvement
through Safety Innovation
Serving as an effective catalyst for continuous
improvement, Jurong Shipyard’s annual Safety
Innovation Teams (SIT) Convention has spawned
a multitude of innovative ideas and
solutions since its introduction in 1996.
Executive Director Mr Lee Yeok Hoon encouraging employees
to continue innovating and improving.
A representative demonstrating the merits of his team’s
innovation to the panel of judges.
Now into its 10 th run, this year’s SIT convention,
held on August 14, 2006, was no exception, as
seen from the highly creative workplace
improvement projects presented by the seven
participating teams. All the innovations were
inspired by a desire to improve existing processes
for better productivity and safety.
Winning SIT Projects
After much deliberation, the judging panel
accorded the top spot to the SAFE SCAFF team
from Hull Painting (HP) Section for their Winch
Wire Handler, the second place to LIFE team
from Jurong Machinery Automation (JMA) for
their earth cable stripper and crimper, and the
third prize to VISION team from Jurong Integrated
Services (JIS) for their Quick Ladder Install Device.
Presentation in progress.
1 st 2 nd Combination Earth Cable
3 rd Quick Ladder
Winch Wire Handler (HP)
Stripper & Crimper (JMA)
Install Device (JIS)
The Winch Wire
Handler was
developed by HP's
SAFE SCAFF team
to enhance the
safety of air winch
operations during the lifting of scaffold
materials from tanks. As the previous
method involved close hand contact with
the winch wire, personnel were exposed
to the risk of injuries from damaged,
broken or entangled wires.
The Winch Wire Handler serves as a
protective barrier as the winch wire is
passed through the device's durable
copper inner core. Designed with a tough
rubber outer core and an end stopper,
the device is non-slippery, thus averting
incidents associated with material
slippages. By eliminating direct contact
with the winch wire, this user-friendly
and cost-effective innovation minimises
the occurrence of hand and finger
injuries, thereby increasing workers’
morale and productivity.
The Combination
Earth Cable Stripper
and Crimper was
conceived by JMA’s
LIFE team to
accelerate the process
of cable stripping and lug crimping during
the mass production of earth cables.
Conventionally, the process of stripping
and crimping cables was done manually
using a blade cutter and a lug crimper,
which was not only inefficient but also
exposes workers to the risk of hand and
finger injuries.
This innovation, which integrates a
pneumatic stripping device and a
hydraulic-operated crimping component,
delivers a high quality finish without the
need for strenuous physical exertion. The
user-friendly invention, adaptable for
cables and lugs of different sizes, comes
with pre-measured stoppers, which
ensure standardisation and eliminate the
time-consuming process of measuring
and trimming. Since implementation, the
device has sped up earth cable
production time by more than three times
as compared to the previous method.
The VISION team from
Jurong Integrated
Services invented the
“Quick Ladder Install
Device” to provide
secure ladder access
to steel blocks during assembly and
outfitting works. Previously, as there
was no appropriate method of securing
the ladder onto the block, personnel
often risk their safety by taking shortcuts
to gain entry.
The “Quick Ladder Install Device” was
fabricated to overcome these limitations.
Firmly fitted to the steel block by a clamp
nut and angle-lock nut, the portable
device comes with two brackets for
securing each end of the ladder. With
the ladder now firmly attached to the
block structure via the device, potential
falling and tripping hazards are
eliminated, resulting in improved safety
within the yard.
10

With systematic identification and assessment,
the risks and hazards involved in key processes
can be better managed and significantly minimised.
With this in mind, a Risk Management Workshop
was organised on July 28, 2006 for managers
within SembCorp Marine’s shipyards. This
workshop is the first of an ongoing series to
educate employees on the Group’s risk
management system.
Happenings
Sharpening Skills in Risk Management
Workshop in action.
To pique interest among youths towards
marine-related careers, Jurong Shipyard opened
its doors on July 31, 2006 to students from
Ngee Ann Polytechnic’s Marine and Offshore
Technology department.
Through case studies and interactive discussions,
participants acquired practical skills in identifying
potential risk areas, assessing the severity and
likelihood, as well as drawing up strategies to
tackle the issues at the source.
Yard Tour for Poly Students
Highlighting the promising career prospects in the marine
industry.
Discussing risk management strategies.
Guiding students on a yard tour.
As part of the visit, students were brought around
the yard and workshops, where they had the
opportunity to gain a better understanding of
marine and offshore engineering operations
as well as the workings within a shipyard.
Insights into Hull Structure
Design & Production
Health
Workshops
Take Charge of Your Health
Employees were encouraged to adopt a
proactive approach to health through a
series of five workshops held between
June 29 and August 3, 2006. Part of
the “Take Charge of Your Own Health”
programme, staff learnt ways to keep
common diseases such as hypertension,
diabetes, and high cholesterol at bay.
AIDS Awareness
To enhance AIDS awareness, Jurong
Shipyard organised an educational
workshop for employees on July 18,
2006 in partnership with the Health
Promotion Board. Integrating elements
of theatre, the informative talk provided
staff with a better understanding of AIDS
and its preventive measures.
Professor Y. Okumoto from Japan’s Kinki University sharing his knowledge on hull structure design and production.
To keep employees abreast of the latest
engineering expertise, Jurong Shipyard invited
Professor Y. Okumoto, to deliver a series of talks
on “Hull Structure Design & Production” from
July 17 to 19, 2006. Professor Okumoto, who
has an impressive history of experience at
Japan’s Ishikawajima-Harima Heavy Industries
and teaches at the Kinki University’s School of
Engineering, shared invaluable insights and
indepth knowledge on the design, engineering
and production of hull and offshore structures
to the yard’s senior management and
engineering staff.
11

Happenings
Paintball Adventure for SeaDrill Team
To further strengthen the bonds of friendship
for enhanced synergy, the SeaDrill project team
took part in an exciting paintball adventure on
July 27, 2006 at the Orchid Country Club.
A teambuilding exercise with a twist, the
fun-filled game saw teams comprising yard
employees and SeaDrill project partners
applying the principles of communication and
co-operation as they ‘battle’ it out on the field.
Bring on the paintball action!
Teamwork at play – Bonding with SeaDrill project partners.
Strengthening friendships after the game.
Sentosa Volleyball Fiesta
The spirit of competition was in the air as 65
employees from Jurong Shipyard gathered at
Sentosa’s Palawan Beach on August 12, 2006
for a beach volleyball competition organised by
the Jurong Shipyard’s Recreational Club (JSRC).
Executive Director Mr Lee Yeok Hoon presenting the champion
trophy.
proudly received their trophies from Jurong
Shipyard’s Executive Director Mr Lee Yeok Hoon.
United we ‘fight’!
Mizuno
Wave Run
Enthusiastic runners from Jurong Shipyard
came together on July 23, 2006 at Kovan
Garden for the gruelling Mizuno Wave
Run. The 10km route not only provided
a chance for employees to test their
stamina and endurance, but also many
opportunities for friendship and bonding
along the way.
Having some beach volleyball fun!
With a total of eight contesting teams taking
part, the afternoon was filled with excitement
as the players fought passionately for the much
coveted title with their adroit game-play. Last
year’s reigning champion, the “Black Stars” team
from Machinery and Electrical Section continued
their winning streak this year by outplaying the
competition and taking home the championship.
Cheered on by avid supporters, the top teams
12
After a day of rigourous activity, participants
and supporters feasted on a beach barbeque
buffet and grooved along to the catchy
melodies performed by the musical talents of
Jurong Shipyard.
Champs from Black Stars team celebrating their victory!