Minister s foreword.

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1 EDITION 13 April 2011 Minister O Brien and Modular s John Davies tour the new facility. Minister s foreword AMC News welcomes the new Minister for Commerce, the Hon Simon O Brien. Minister O Brien s portfolio includes responsibilities for the Australian Marine Complex (AMC), marine and defence, oil and gas, and local industry participation. Since entering Parliament as a Member of the Legislative Council for the South Metropolitan region, I have been to the AMC on a number of occasions. Recently, since I was appointed Minister for Commerce, I have visited the Common User Facility (CUF), Civmec, Strategic Marine and Modular Engineering for a more detailed tour of these facilities. It is my intention to visit as many companies based in and around the complex as possible. I look forward to meeting company representatives and viewing capabilities first hand to gather a true understanding of the successes and consequent pressures manufacturing businesses face in our State. Companies within the AMC have watched with interest the media coverage on the issue of local industry participation. The AMC CUF plays a significant role in assisting local industry to compete internationally. Since opening in July 2003, the CUF has delivered more than 360 major infrastructure projects worth in excess of $660 million, and generated more than 9,000 jobs. I aim to ensure the infrastructure available at the AMC-CUF continues to deliver economic benefits for Western Australia. I believe the State Government will continue to play an extremely important role in ensuring the AMC s investment will continue to assist local companies to compete internationally. A range of complex market conditions have contributed to increased levels of competition for contracts arising from Western Australia s resource developments. Conditions including changes to construction and fabrication technology; increased pressure from Asian suppliers; greater use of global supply chains and international business models by project proponents; and a strong Australian dollar are all impacting the competitiveness of the State s local manufacturing industry. continued on page 2

2 The State Government has identified that a more comprehensive approach to local industry participation is required to deal with these conditions and we are modifying our policy to suit these conditions. Western Australia is an open economy and must remain at the forefront of business and market trends if we are to continue to succeed in attracting investment and major contracts. This means we must welcome change and its implications as the basic determinant of our future. Our State history is based on successfully overcoming challenges and adapting to new opportunities. The AMC is a prime example of how we have evolved to our current levels of sophistication in supporting marine, defence and offshore energy projects of international standing. Local industry participation is a high priority for the State Government as a key determinant of the current and future performance of the Western Australian economy. I am a strong supporter of the AMC and I look forward to working with industry to turn opportunities into real projects that will benefit Western Australia. The Hon Simon O Brien MLC Minister for Commerce AMC Management s Mike Bailey, Commerce s John O Hare and Minister O Brien tour the AMC Common User Facility. New workshop for Modular 2 On a recent visit to the AMC, Minister O Brien officially opened Modular Engineering s new premises on Sparks Road. Minister O Brien said Modular Engineering was a thriving Western Australian fabrication company with a solid reputation for quality and reliable workmanship on major projects throughout the State. Modular Engineering is a prime example of a Western Australian company successfully competing Inside this issue Opportunities ripe for FMC with official launch of new facility... 3 Facilities at the Jakovich Centre in demand... 4 Engineering company wins prestigious business award... 5 Chevron becomes a sponsor... 5 CUF update CUF activities... 8 and securing contracts connected to some of the State s biggest resources projects, he said. The company s client list is testament to this success having completed work for Chevron Australia, Woodside Energy, Apache Energy, Divex Asia Pacific, Aker Solutions, ConocoPhillips and the Water Corporation. This expansion will put Modular Engineering in a strong position to take further advantage of the opportunities currently available in specialised steel fabrication and assembly. Modular Engineering Director John Davies said the expansion would allow the company to not only attract new work but enable it to diversify its client base. Modular s $2.5 million expansion includes a two-storey office complex; 2,000 square metre workshop complete with three 16 tonne overhead cranes; and internal and external equipment storage areas.

3 Opportunities ripe for FMC with official launch of new facility Western Australia s rich reserves of oil and gas and the Australian Marine Complex (AMC) subsea cluster made FMC Technologies choice easy when deciding where to locate its new aftermarket facility. Officially launched in February at the Australian Marine Complex (AMC), FMC s new Sparks Road facility will provide world-class aftermarket support for the oil and gas industry. FMC Asia Pacific Director for Sales and Marketing Frode Scott Nilsen said increasing local capability was vital in growing FMC s market share in Australia. The provision of a localised subsea aftermarket support industry for both offshore operations and production maintenance was one of the key elements for winning projects within the State, he said. Building this capability will help to ensure FMC continues to grow its market share while strengthening the State s global reputation for excellence in this field. The company aims to develop relationships with highprofile operators in Australia including Shell, Inpex, Apache and Chevron, while providing full support for its current customers, Woodside and ENI. Department of Commerce General Manager John O Hare said the State Government had been in discussion with the company since 2007 regarding investing in Western Australia and was thrilled with its decision to locate within the AMC. FMC s new facility is a valuable addition to the thriving subsea cluster within the AMC and fits perfectly with the Government s vision for the complex, Mr O Hare said. FMC Technologies is a global provider of subsea production, processing systems and surface wellhead systems. The new premises include a workshop hi-bay of 1800 m 2, a low-bay of 1200 m 2, three high capacity cranes, a gas test pit, a clean room for control systems maintenance and upgrades, a wash bay and a Systems Integration Testing area with Heavy Stack Pad. There is also office and storage space with room for future expansion. Tore Halvorsen - Senior Vice President, Global Subsea Production Systems, FMC Technologies, Ms. Aleisha Woodward US Consul General, John O Hare GM Dept of Commerce open the facility. Contact information FMC Technologies Australia Ltd Aftermarket 66 Sparks Road Henderson WA 6166 Phone: Fax: FMC Technologies Australia Ltd Level 11, St. George s Terrace Perth WA 6000 Phone: Fax: Website: (from left) Nicolas Gillier FMC, Sean Salter Woodside, Tore Halvorsen FMC VP, Nino Fogliani - Woodside, Larry Rucinski FMC GM, Brett Darley Woodside at the opening. 3

4 Facilities at the Jakovich Centre in demand Since its official opening, there has been a steady stream of people attending events at the Jakovich Centre. Here are two planned for April and May. Vending machine with a difference Western Australian company Industrial Vending Systems will use the Jakovich Centre to demonstrate its new Safety Station Management System. Safety Station supplies personal protective equipment and other products in the workplace 24 hours a day, seven days a week. This management control system allows managers to monitor usage on-line and generate reports by individual or user groups to help with compliance, establish accountability and improve cost control. Similar in look to a confectionary vending machine, the station can stock up to 40 different products and can be configured to meet individual work place requirements. Employees access products using individual swipe cards, which can include their current company ID cards. Existing clients include Rio Tinto, the Fremantle Port Authority, BHP Billiton, WaterCorp and Schlumberger. When: between 12pm 5pm, Tuesday 19 April Contact: Kim Maisey on or info@industrialvendingsystems.com.au Website: Do you know how to protect your intellectual property? Owners of small to medium sized businesses are invited to attend a seminar on the importance of protecting intellectual property (IP). Hosted by Business Foundations Inc, the seminar will help business owners to understand the intangible value of their business that isn t associated with equipment or buildings. In business terms, IP is a business proprietary knowledge or in other words, the competitive edge that sets successful companies apart. Business Foundations Inc Executive Director Phil Kemp said IP protection was even more essential as world markets become increasingly competitive. All businesses have value locked away in their people, systems and procedures that should be assessed and protected, in the same way as physical assets are protected, Phil said. This seminar will provide small to medium sized business owners with the skills to assess their own intangible business assets, and take steps to protect that value. The seminar is just one of the innovation focused events that will take place throughout Western Australia in April and May. When: Wednesday 18 May (bookings are limited) Contact: Phil Kemp on or admin@businessfoundationsinc.com.au Website: Have you bought your ticket to Aberdeen yet? If you are a locally-based service and supply company for the petroleum industry, Aberdeen should be on your radar. The State Government is looking to coordinate a Western Australian business mission to one of the world s leading oil and gas conferences and exhibitions, Offshore Europe 2011 from 6-8 September. The event will offer the perfect opportunity to develop and build on existing business relationships in the United Kingdom and Europe; benchmark against competitors; or position your company for opportunities with international alliances. If you attend the mission, your business will have access to: the Western Australia stand as a base to network and meet relevant stakeholders and to display your marketing material; a customised itinerary of business meetings with international companies; and industry briefings tailored to your businesses strengths. A trip to other destinations in the UK and France is also being considered a week prior to Offshore Europe This would be perfect for any company with specific technologies or services that may be of interest to global Engineering Procurement and Construction Management. The proposed mission is a joint initiative between the Departments of Commerce and State Development and the Western Australia Government s European Office in London. If you would like more information, contact Paul Mercer or paul.mercer@commerce.wa.gov.au Offshore Europe 6-8 September 2011 Aberdeen, United Kingdom 4

5 Western Australia Industry and Export Awards Engineering company wins prestigious business award A company based at the Australian Marine Complex (AMC) has been recognised for its outstanding work on both a State and National level. Matrix Composites and Engineering Pty Ltd won the Premier s Award for Excellence at the 2010 Western Australian Industry and Export Awards. The awards showcase the achievements of Western Australian business and recognise the valuable contribution they make to the State s economy. Matrix has a reputation, nationally and internationally, as a leading manufacturer of engineered products for the subsea oil and gas, mining and defence industries. The oil and gas industry is vital to the growth of Western Australia s economy and companies such as Matrix play an important role in the development of this sector. Matrix is an export oriented company and its products, which are all manufactured in Western Australia, are exported to countries such as Brazil, Korea, the United States and a number of other international destinations. The company will soon officially open its new worldclass production facility at the AMC which will house the world s largest and most sophisticated buoyancy production plant and provide a platform for future export and employment growth. Matrix Composites and Engineering also went on to win the Large Advanced Manufacturer category at the National Australian Export Awards held in Sydney. Other Western Australia Winners at a National level included Epichem, Small Business Export Award and Navitas, Education and Training Export Award. The Western Australia Industry and Export Awards program is coordinated by the Department of Commerce and sponsored in 2010 by ANZ, ACPET, AusIndustry, Australian Trade Commission, Craig Mostyn Group, Export Finance and Insurance Corporation, Fremantle Ports, Lavan Legal, Rio Tinto and The West Australian. The 2011 Industry and Export Awards program will be open for nominations from 2 May. Information will be available from the Department of Commerce website: Chevron becomes a sponsor The Department of Commerce is pleased to announce that Chevron Australia has become a sponsor of the 2011 Western Australia Industry and Export Awards program. Chevron is one of the world s leading integrated energy companies, with subsidiaries that conduct business around the world. The company is involved in virtually every facet of the energy industry. Commerce s General Manager, John O Hare said Chevron s sponsorship was another very positive sign that the awards were highly valued by industry. In the last year alone, the awards have attracted four new sponsors, all with an influential industry presence. With their support, I encourage all businesses with a story to tell to enter the awards program, he said. 5

6 Material Offload Facility (MOF) for Barrow Island Civmec was subcontracted by Boskalis to build the material offload facility concrete wharf modules for Gorgon. The modules are a key piece of infrastructure for Barrow Island and will be used to receive the equipment and materials that will enable the project to progress. Once completed, the modules were loaded onto the SAL Vessel MV Regine for transport to Barrow Island. Chevron Australia awarded Boskalis Australia a $744 million contract to construct the port infrastructure to serve the offshore Gorgon LNG project. The project is expected to be completed by the end of Civmec Common User Facility update The modules were loaded onto the SAL Vessel MV Regine New project dominates lay down area at the CUF The Saipem Leighton Consortium (SLC) is using the lay down area at the CUF to build 56 concrete caissons weighing 3000 tonne each. Once fabricated, steel topsides will be erected onto the caissons and loaded onto a semi submersible barge at one of the AMC wharves. The caissons will be transported to Barrow Island where they will be floated off and positioned to create Gorgon s 1.2 kilometre LNG Export Wharf. The CUF s extensive facilities will enable 12 caissons to be built at one time, using 130,000 square metres of space. This is one of the largest projects, in area, to take place in the facility and is expected to be completed in New project The first 12 caissons being built at the CUF. 6

7 New flare tower for Pluto Fremantle Steel has fabricated tower structure preassemblies and delivered them to the CUF to build a flare tower for Woodside s Pluto project. AGC will assemble the structures into modules for sea transport to Pluto. Gas plant flare towers act as safety systems to release and burn-off gas when there is a pressure build up. Floating dock A steady stream of dockings has taken place on the AMC floating dock since the last edition of AMC News. Three of the Royal Australian Navy s (RAN) Collins Class Submarines have been successfully docked and transferred to ASC s facility for maintenance. The integration of the CUF facilities with the expertise of the ASC West personnel is winning accolades at the highest levels within the RAN. Blue Fin I and Blue Fin II large material barges have recently been docked at the AMC-CUF. Both vessels had their hulls painted and underwent a cleaning process to remove invasive species. Due to the width of each barge, the dock was the only infrastructure in the State with the lifting capability of this size. 7

8 CURRENT Common User Facility activities: Royal Australian Navy: maintaining HMAS Waramunga during its docking maintenance availability Chicago Bridge and Iron: pre-staging of LNG tank components to erect some of the world s biggest LNG tanks for Barrow Island Cimeco: steel fabrication of tanks for potable water, sewage and fuel for the workers accommodation on Barrow Island AGC: preassembly of an onshore flare tower for Woodside s Pluto project FMC: using the CUF as additional materials handling space for subsea well intervention tools Hanseatic: building their third and fourth 75 metre superyacht for export ASC: maintaining a Collins Class submarine Ferguson Seacabs: offshore oil and gas cargo handling units for the oil and gas industry CUF: Work commenced on a high wide load path capable of transporting 30 by 60 metre modules from Civmec s facility onto the wharves at the CUF Chevron: operation of quarantine inspection and staging for materials load-out to Barrow Island at the newly built AMC-CUF service and supply base Aerial view of the AMC-CUF. 8 Promote your company in the AMC News The AMC News is received by more than 2000 readers including other businesses within the AMC, key industry representatives from many organisations, local councils and the media. This newsletter is a great way to promote your business and the new ventures at the AMC. In each issue we profile different companies within the Shipbuilding, Fabrication, Technology and Support Industry Precincts as well as Common User Facility activities. Contact: Amanda Carrie Department of Commerce Phone: amanda.carrie@commerce.wa.gov.au Disclaimer The information contained in this publication is provided in good faith and believed to be reliable and accurate at the time of publication. However, the information is provided on the basis that a reader will be solely responsible for making their own assessment of the information and its veracity and usefulness. The State shall in no way be liable, in negligence or howsoever, for any loss sustained or incurred by anyone relying on the information, even if such information is or turns out to be wrong, incomplete, out of date or misleading. SIB0589/2009/ April 2011/ 2000