Odense Steel Shipyard Ltd News

Mitsubishi Heavy Industries, Ltd. (MHI) has entered into an agreement with Odense Maritime Technology A/S (OMT) of Denmark, a provider of ship design services, on collaboration in ship engineering business. The companies said they plan to combine abundant track records in shipbuilding business to target speedy development of diverse ship types in a quest to expand their licensing business. Under the newly agreed collaborative arrangement, MHI will primarily take charge of developing propulsion performance aspects, including hull form design, model testing, and development of energy-saving devices and propellers. OMT will be responsible largely for the conceptual and basic designs based on MHI's hull form designs.

Mitsubishi Heavy Industries, Ltd. (MHI) has concluded an agreement with Odense Maritime Technology A/S (OMT) of Denmark, a provider of ship design services, to collaborate in expanding their licensing business. Under the newly agreed collaborative arrangement, MHI will primarily take charge of developing propulsion performance aspects, including hull form design, model testing, and development of energy-saving devices and propellers. OMT will be responsible largely for the conceptual and basic designs based on MHI's hull form designs.

The Society of Naval Architects and Marine Engineers (SNAME) awarded their highest honor, the David W. Taylor Medal for notable achievement in naval architecture or marine engineering, to ABS Senior Vice President of Technology Peter Tang-Jensen at the society’s Annual Banquet during the SNAME Annual Meeting and Expo in Seattle, Wash. A well-respected member of the maritime community with more than 35 years of experience in shipbuilding design and engineering, Tang-Jensen has been providing strategic leadership for the classification society’s research and product development efforts since 2006. The ABS technology leader and former Executive Vice President of Odense Steel Shipyard, Ltd.

Mærsk A/S informs that at its Board of Directors’ meeting today Mr. Mærsk Mc-Kinney Møller announced that he will retire as Chairman of the Board of A.P. Møller - Mærsk A/S December 15, 2003 and simultaneously retire from the Board.As new Chairman of the Board of Directors of A.P. Møller - Mærsk A/S Mr. Michael Pram Rasmussen was elected with effect as of that same date. The Board and Mr. Mærsk Mc-Kinney Møller consider Mr. Pram Rasmussen as especially suited for that important office.Mr. Møller will remain Chairman of The A.P. Møller and Chastine Mc-Kinney Møller Foundation, Chairman of Odense Steel Shipyard Ltd. and will remain as member of a few Boards, including Mærsk Olie og Gas AS.Mr. Møller will remain partner of the Firm of A.P. Møller and Mr.

Odense Steel Shipyard Ltd. (Odense Staalskibsværft A/S) has concluded contracts with Carras Hellas Group, Greece, for a series of newbuilding Capesize bulk carriers. This new 180,000 dwt design has been developed between Odense and Carras with deliveries beginning in 2009. These orders, which will be built in the largest dock at the shipyard will, together with existing orders, fill up the capacity of Odense Steel Shipyard into 2010.

Odense Steel Shipyard Ltd. announced that EPIC Shipping, UK, has contracted to purchase six RO-RO vessels at Odense Steel Shipyard Ltd. Final contract with EPIC Shipping is expected to be signed at the end of June 2007.

Odense Steel Shipyard Ltd. (Odense Staalskibsværft A/S) announces the sale of Balti ES Ltd., a manufacturer of metal components based in Narva, Estonia, to Cargotec Corporation, Finland. The final company transfer is expected to take place within 1-2 months. Following the closure of Maersk Container Industri´s production facilities in Tinglev, Denmark the strategic importance of Balti ES for the Odense Steel Shipyard Group has been reduced. Balti ES functions as a separate unit and today sells most of its production capacity to companies outside the A.P. Moller - Maersk Group. Balti ES was acquired by the Odense Steel Shipyard Group in 1997, and currently employs approximately 600 people. The two parties have agreed not to disclose the purchase price.

The management of Odense Steel Shipyard Ltd. has decided to initiate negotiations for a reduction in the number of employees due to difficulties in obtaining new orders. According to the Management the reduction may amount to approximately 140 salaried employees in the administration, design and engineering departments. There will be a continued need for approximately 440 salaried employees and efforts towards obtaining new orders will continue. The Yard presently employs approximately 575 salaried and 2,600 waged employees. The management of Odense Steel Shipyard Ltd. and employee representatives will immediately initiate negotiations, and a negotiation committee will be established in order to reduce the impact of the contemplated reductions.