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HATLAPA Takes Over KGW Business Unit

Maritime Activity Reports, Inc.

April 21, 2006

As of April 1, 2006 the managing partners of HATLAPA Uetersener Maschinenfabrik GmbH & Co. KG (HATLAPA) took over the former business division “ship technology and cargo handling” of KGW Schweriner Maschinenbau GmbH (KGW) and integrated this into a newly founded company KGW Marine GmbH, located in Schwerin. Close to 20 KGW people, covering sales, design and development department as well as service and commissioning personnel, are going to stay with the new company, keeping responsibility for the existing orders. In doing so, the long-term future of the ship division’s product range of KGW is ensured. Within the last almost 15 years KGW Schweriner Maschinenbau GmbH has become one of the leading suppliers of wind mill towers. To expand this successful and dynamic field of business and to further develop their own energy technology, the KGW management decided to separate the fields of business and sell the ship technology and cargo handling division. The production facilities completely remain in the hands and under management of KGW. In a long-term delivery contract the production of the ship division’s products will mostly be carried out at the location in Schwerin. For the current year and ongoing contracts the new KGW Marine GmbH has placed orders for production with KGW, so that the present manufacturing facilities are fully employed. First of all this serves to ensure basic employment within KGW production, and secondly gives the chance for building up an effective and competitive lean production. HATLAPA has been known for decades as a reliable partner for shipyards and ship owners worldwide. During the past 10 years HATLAPA was able to constantly expand. After the take over and integration of the starting air compressor product range from an English competitor in 2003, the purchase of the winch, steering gear and crane division from KGW leads yet to a synergetic completion of the present HATLAPA product range. The purchase of these business fields ensures wider possibilities in new markets and increases the innovative potential of the HATLAPA group. By concentrating know-how and experience, a reliable partnership and the necessary continuity for the end user is guaranteed long-term while providing the well known worldwide service. HATLAPA and KGW are significantly gaining economic and technical strength by this transaction. Both companies have founded the basis for long-term success by focusing on their core business, concentrating know-how, expertise while increasing innovative potential.

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