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Trade Press Release

MacGREGOR combines cranes and bulk resources for pair of Panamax selfunloader conversions

05/04/2007

MacGREGOR crane sales keep pace with worldwide demand

MacGREGOR strong first quarter for crane sales gave it a considerable increase in market share, which the company intends to maintain even when market conditions are less favourable, thanks to mature and well established local manufacturing, proven and reliable design, and a worldwide service network

During the first quarter of 2007 MacGREGOR has secured crane orders totalling u201a63 million. At the end of last year the signs were that the market for cargo handling cranes and cranes for tankers was shrinking, said Erik Hgglund, general manager of MacGREGOR crane division. The reality, however, is a completely different scenario, with significant orders for most ship types.

MacGREGOR crane division has had the presence and skill to overcome great competition as well as to control supply of important components. We have managed to keep up the pace and respond to the demand from the market worldwide. Our orderbook is stronger then ever. However, with all the work we have done in the past on modularisation, standardisation and an extended product portfolio we are well prepared to grow with the market.

Bulkers

MacGREGOR strong foothold in China with local manufacturing and partly sourcing has made it possible to secure long series of bulk carriers, the most competitive segment, Mr Hgglund said.

u2014 Weihai Ship Yard has ordered a total of 24 GLB 3024.4-2 cranes to be installed on eight bulk carriers for Greek owner Navarone. The cranes will be manufactured at MacGREGOR long-term partner Nanjing L¼zhou Machine Company Ltd (LMC) to be ready for commissioning during 2008-2009.

u2014 Sinopacific yards (Dazhou, Dayang and Zhejiang) have ordered cranes for a total of 13 vessels. Each ship will be geared with four sets of GLB3528-2 for undisclosed interests. These ships will be installed in sequence during 2008 and 2009.

General cargo ships

General cargo ships have always been the most stable segment with a relatively constant demand, Mr Hgglund said. MacGREGOR has a long history in the sector and has been able to secure some strategic orders.

u2014 Hanjin Heavy Industries shipyard in Korea has ordered cranes for two general cargo ships for its own shipping line. Each ship will carry two sets of GL4028.5-2 for delivery in January and August 2008 respectively. Also this delivery will be manufactured by the Chinese partner LMC.

u2014 PACC Ship Managers Pte Ltd of Singapore has acknowledged MacGREGOR with further crane contracts for its lively newbuilding scheme in China. Two ships to be built at Zhejiang Hongguan Shipbuilding Co Ltd, China, will each be geared with one twin. The GL4522/3728/3031-2and one single GL4027/2637-2. Cranes to be manufactured at LMC and commissioned in spring respectively autumn 2008.

u2014 Kouan Shipyard, China has signed orders of four general cargo ships for COSCO Guangzhou, China. Each vessel will carry one twin TGL4522/3728/3031-2 cranes and two single GL4027/2637-2. Cranes are to be delivered and installed during 2009 and early 2010 by Chinese partner LMC.

Container ships

The future volume for container carriers has provoked lively discussion in the market, and volumes are expected to decrease, Mr Hgglund said. However, with the increasing number of jumbo carriers entering the market the need for feeder tonnage is necessary.

u2014 In Poland MacGREGOR has secured orders at Gdansk SY as well as at Gdynia SY. Rickmers Reederei GmbH & Cie KG, Germany, has signed up for one ship with three GL4528/4032-2 units on board and Projex Schiffahrtsgesellschaft GmbH & Co, Germany, has signed for one ship carrying three GL4527/4030-2 cranes. Both deliveries will be fulfilled in late 2007 and manufactured by MacGREGOR European partner Remontowa in Poland

The Chinese market has also been active in the container carrier segment and acknowledged MacGREGOR with a large number of contracts.

u2014 Long-term co-operation partner Wenchong Shipyard, China, has ordered another four ships each carrying one GL4530/3338.5/2641.5-2 and one GL4528.8-2. The feeders are for undisclosed interests and to be delivered during 2009.

u2014 Weihai Shipyard, China, has ordered cranes for one feeder contracted by Briese Schiffahrts GmbH & Co KG containing one GL4526/4029-2 and one GL4531/4035-2. Weihai has also decided to use MacGREGOR cranes on board two sister ships to be delivered to Danish Marten Shipping. All three ships are to be delivered during 2008.

Finally China Shipbuilding Corporation has ordered cranes for three sets of feeders for Cido Shipping. Each vessel will carry one GL4528/3037/2541-2 and one GL4028/2529.3-2. The ships are to be delivered from October 2009 to February 2010.

Trans-shipment

MacGREGOR has been active in the transloading segment for about ten years, Mr Hgglund said. Existing references have convinced Emirates Trading Agency, UAE, Dubai to install four K3028-4 heavy duty cranes on eccentric platforms on board each of two panamax transloading stations. The stations will operate in the Arabian Gulf, primarily handling iron ore. These orders are in combination with bulk handling systems from MacGREGOR bulk division. The systems are to be delivered during 2008 to a Chinese shipyard. The complete installation will be able to handle 2,500 tonnes per hour.

Tankers

During the boom in the tanker business during the last four years, MacGREGOR has managed to establish itself as the leading supplier of hose handling and provisions cranes in hard competition with domestic suppliers, Mr Hgglund said. The total concept with a reliable initial delivery and a worldwide service network has convinced both shipyards and owners.

The total of 156 hose and provisions cranes contracted between January and March 2007 are to be delivered during 2008-2010 on top of the existing orderbook. The cranes will manufactured by MacGREGOR partners in China, Korea and Croatia.

In the first quarter MacGREGOR has managed to secure the following orders in Korea, China, Romania and Croatia:

Two 110,000 dwt tankers at Hudong-Zhonghua Shipbuilding (Group) Co Ltd, China for Valles Steamship, Canada including one HH630-1526,8-4 and one GP63-0311-2 per ship.

Two VLCC tankers at Bohai Shipbuilding Heavy Industry Co Ltd, China for World Wide Shipping, Hong Kong including two HH630-2020-4, one GP1018-2 and one GP250-0522-2 per ship.

Six 110,000 dwt tankers at Hudong-Zhonghua Shipbuilding (Group) Co Ltd, China for Navigazione Montanari SpA, Italy including one HH630-1526,8-4 and two GP63-0311-2 per ship.

Four 65,500 dwt tankers at MiD 3 Maj Engines and Cranes Co, Croatia for Stena, Sweden, including one HH800-1527-4 (design and components) per ship.

Four 4,860 TEU ships at Daewoo-Mangalia Heavy industries Co Ltd, Romania for Niederelbe Schiffahrtsgesellschaft GmbH & Co. KG, Germany including two GP250-12,515-4 per ship.

Four 114,000 dwt tankers at New Times Shipbuilding Co Ltd, China for Scholler / Koenig, Germany including two HH630-1525-4 per ship.

Four 210,000m3 LNG carriers at Daewoo Shipbuilding & Marine Engineering Co Ltd, Korea for Qatar Gas Transport Company, Qatar including two HH400-1025,6-2 and two GP250-07,518-2 per ship.

Three VLCC tankers at Daewoo Shipbuilding & Marine Engineering Co Ltd, Korea for National Iranian Tanker Co, Iran including two HH800-2520-4, one GP320-1516,5-4 and one GP100-0316,5-2 per ship.

Three VLCC tankers at Daewoo Shipbuilding & Marine Engineering Co Ltd, Korea for Gulf Marine Management, Greece including two HH630-2020-4, one GP250-1015,5-2 and one GP100-0215-2 per ship.

Seven 158,000 dwt tankers at Hyundai Samho Heavy Industries Group Co Ltd, Korea for Marmaras Navigation, Greece including two HH630-2020,5-4 per ship.

Seven 159,000 dwt tankers at Hyundai Heavy Industries Group Co Ltd, Korea for Kristen Navigation, Greece including two HH400-1519-4, one GP250-06,317-2 and one GP160-0317-2 per ship.

Four 156,000 dwt tankers at Jiangsu Rongsheng Heavy Industries Group Co Ltd for Cardiff Marine including two HH400-1518-4, one GP160-0516-2 and one GP160-0518-2 per ship.

Two 105,000 dwt tankers at Hyundai Heavy Industries Group Co Ltd, Korea for Kristen Navigation, Greece including two HH400-1519-4, one GP100-0413-2 and one GP100-0216-2 per ship.

What we have seen in the last quarter will of course not last forever, Mr Hgglund said. However, with today set-up including mature and well established local manufacturing, proven and reliable design as well as our worldwide service network will defend our territory even when market environment is less comfortable.

For further information, please contact:
Erik Hgglund, General Manager, Crane Division , MacGREGOR (SWE) AB
Tel : +46-660-29 40 01 Fax: +46-660-29 42 87
E-mail : erik.hagglund@macgregor-group.com

or

Kenneth Mellin, Sales Manager, Crane Division , MacGREGOR (SWE) AB
Tel: +46-660-29 41 76 Fax +46-660-29 42 87
E-mail: kenneth.mellin@macgregor-group.com

or

MacGREGOR Group press office:
Mr Steve Labdon, MacGREGOR Group Media Representative
Tel: +44 (0)20 8370 1740 Fax: +44 (0)20 8364 1331
E-mail: steve.labdon@j-l-a.com


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