38 ENVIRONMENTAL IMPACT

4 Objectives and means

5 Group Management and Board of Directors 6 Comments from the CEO

8 Historical highlights 10 Business areas

12 BUSINESS AREA STEEL 14 Scana Steel Björneborg 16 Scana Steel Booforge 17 Scana Steel Söderfors 18 Leshan Scana Machinery Ltd 20 Scana Steel Stavanger 21 Scana Steel AB

22 BUSINESS AREA MARINE 24 Scana Propulsion

28 Scana Skarpenord

30 Scana Korea Hydraulic Ltd. 32 BUSINESS AREA OIL & GAS 34 Scana Subsea

35 Scana Offshore Vestby 36 Scana Offshore Technology 37 Scana Offshore Services

40 ANNUAL ACCOUNTS 2010 41 Directors’ report

47 Scana group profit and loss account 48 Scana group balance sheet

49 Scana group cash flow statement 50 Scana group statement of change in

shareholders equity 51 Scana group notes

83 Parent company profit and loss account 84 Parent company balance sheet

85 Parent company cash flow statement 86 Parent company notes

91 Declaration by the Board of Directors and the CEO and group chief executive 92 Auditors´ report

94 SHARES AND SHAREHOLDERS 2010 96 Articles of association

98 KEy fIGURES

The main products for the Steel area are the production

of customized steel forgings and castings for the oil and

gas, energy, marine, machine and tool industries.

The Marine area develops and produces gears, pro­

pulsion systems and valve control systems for ships.

The main products for the Oil and Gas area are design

and production, marketing and sale, in addition to

maintenance and repair of equipment and steel

components for the oil and gas industry.

The companies in the three business areas provide

products and system solutions for three market seg­

ments; namely marine, energy and steel and machinery.

Scana’s technology, unique materials knowledge and

extensive production experience form the basis of our

competitive power. Our aim is to be the preferred sup­

plier to leading companies within our market segments.

The majority of our customers are located in Europe, the

Americas and Southeast Asia.

The group has as at 31.12.2010 1 759 employees, of

which 675 work in China. The head office is situated

in Stavanger. The group has operative companies in

Norway, Sweden, China, Poland, USA, South­Korea,

Brazil and Singapore, and representatives in a series of

countries, worldwide.

Scana Industrier ASA (Scana) is a Nordic industrial group operating in three business areas:

Steel, Marine and Oil & Gas.

Scana’s technology, unique materials know­

ledge and extensive production experience

form the basis of our competitive power.

”

Business concept

The objective of the company is to own and manage

manufacturing industry, commercial activities and related

activities. The objectives of the company also include

investing in other companies that can promote the

company’s primary activities.

Scana shall be a market­driven industrial group with niche

products for growing markets.

Vision

Scana creates progress.

Bythis, we maintain that:

Scana Industrier shall be a profitable industrial group.

The head office shall be in Scandinavia, with industrial

bases and centres for technology and market expertise

in Europe and Asia. The group shall serve customers

throughout the entire world.

Scana shall have a reputation for excellent customer

response, strong competition, robust quality and delivery

reliability, and be an attractive and challenging workplace.

Scana’s finances shall be sufficient to develop the group

industrially and commercially.

Main aim and strategies

The main aim of the group is to increase the share­

holders’ values.

On this basis, the following primary strategies have been

determined:

1. Continued organic growth in all business areas.

2. Maintain a good operating margin and effective

financial management.

3. Strengthen the group’s strategic position through

acquisitions

• in order to strengthen our market position

• in order to increase capacity

• in order to supplement our product range or value chain.

4. Develop the repair and service concept within the ma­

rine and energy areas.

The majority of Scana’s companies service one or several of three market segments:

marine, energy, steel and machinery. Scana possesses market­leading knowledge in

these areas, and in the future the company will sell a greater portion of finished products

and solutions.

OBjECTIvES AND MEANS

Scana creates progress

”

Scana has a decentralised organisation in which a large part of the group’s technical and

commercial expertise shall be located in the companies. Scana’s group management team

and finance and accounts functions are based at the head office in Stavanger, Norway.

Rolf Roverud, Group CEO

Rolf Roverud (born 1958) took up the appointment of Group Chief Executive in Scana Industrier on january 1, 2008. He has previously had a number of leading positions in Saga Petroleum, and came from the position of vice Chief Executive in NSB AS. Mr Roverud is an economics graduate and holds a master’s degree in strategy and management.

Frode Alhaug, Chairman of the Board

frode Alhaug (born 1949) was elected as chairman of the board in Scana Industrier ASA in 2008. He worked as the group’s CEO from 2005­2007 and chairman/ member of the board since 2000­2005. Mr. Alhaug is vice chairman of the board in Helse Sørøst RHf. Previously Mr. Alhaug was CEO in Moelven Industrier. Mr. Alhaug is Scana’s third largest shareholder.

Kjetil Flesjå, Group Director / CFO

Kjetil flesjå (born 1967) has a Master in Business Administration and came to Scana from a position in fokus Bank. flesjå has a thorough expertise in banking and a comprehensive experience with corporate finance processes, including acquisi tions and sales, financial risk analysis, balance and liability strategies, in addition to an extensive analytical experience.

Bjørn Dahle

Bjørn Dahle (born 1947) worked in the offshore industry from 1966 and as an independent investor and entrepreneur since 1971. Mr. Dahle is among Scana’s largest shareholders.

Mari Skjærstad

Mari Skjærstad (born 1969) has a law degree from the University of Oslo, with additional education within organisation and management. She is a partner in the law firm johnsrud, Sanderud & Skjærstad AS and has worked as legal counsel since 1995. Mrs. Skjærstad is also a board member in a number of other companies, including Mesta, Norfund and forsvars­ bygg.

Group Management:

Board of Directors

Jan Henry Melhus, Group Director Oil and Gas

jan Henry Melhus (born 1963) is educated as production engineer with additional education within marine technology. He has more than 20 years of experience from Scana’s areas of commitment. Mr. Melhus came to Scana from the position of director for GE Oil & Gas. He has previously held leading positions at vetco Gray, GMC group, NAT and ABB Group.

Martha Kold Bakkevig

Martha Kold Bakkevig (born 1963) has ex­ tensive experience in Management, Strategy and R&D within Technology and Business Development. She has a PhD (Dr.scient.) from Norwegian University of Science and Technology (1995) and a PhD (Dr. Oecon.) from BI Norwegian School of Management (2007). Bakkevig is Managing Director in DeepWell, a well intervention company located i Haugesund.

John Arild Ertvaag

john Arild Ertvaag (born 1955) runs his own investment business through his company Camar AS. The investments are primarily within oil and gas, industry and commerce. He holds a number of board positions in both listed and non­listed companies. Camar AS is the second largest investor in Scana Industrier ASA.

na I nd us trie r A S A

COMMENTS fROM THE CEO

spirit, combined with a very low absence due to illness,

contributes to our competitive power and our results.

I wish to thank all our employees for their great efforts

through a demanding 2010 and for the way challenges

are handled!

We now see that activity for Scana is picking up, but the

order intake for 2010 in total has been too low. This will

influence our profit in the company’s first half of 2011.

We are nevertheless pleased to see the current upturn

in the market and the marked increase in contracts

towards the end of 2010 and in the beginning of 2011.

We have carried out several structural measures to

position ourselves for an activity increase. Our offices

in Houston, Shanghai, Singapore, Houston and Rio de

janeiro bring us closer to our customers in important

markets. The establishment of our own subsea

company has rendered possible several larger, more

complete deliveries from Scana to a market where we

know we have a very strong competitive power. Also,

we have invested to increase capacity, reduce unit

costs and increase robustness in our steel companies.

A strong focus on efficiency, lead­times and unit costs,

in addition to a commitment to the future, makes for a

strong foundation for good future results.

Scana is acknowledged as a supplier of high quality

steel. The recent years we have gradually manufactured

more complete products and systems. We are not

competing in delivering a rod of steel with other steel

works across the globe. Our competitive power lies in

adding value for the customer when we turn high quality

steel into more complete products in a way that few

others can. This strategy makes us unique globally and

is something that we are poised to reap the benefits of

in the future. Our firm basis is a very strong knowledge

and competence in materials technology.

In everything we do, we will focus on delivery precision

and quality. Our customers will experience us as a very

reliable supplier, thus strengthening our reputation and

our competitive position. Our leaders shall closely follow

up their own businesses and “be out there”, among our

customers, to understand their needs and contribute to

solve their challenges.

We expected 2010 to become a volatile and demanding

year for Scana, being a late cyclic company and having

the effect of global activity downturn hit us gravely

towards the end of 2010. We saw this development

early and acted immediately. At the outset of 2010, we

had removed a series of costs, including reducing the

number of hands by 300 people, both temporarily and

permanently.

In hindsight, these changes were very important.

Combined with a strong focus on contributing to

solve our customers’ challenges, we have, in spite of

a negative operating profit in 2010, coped far better

than most comparable companies. Our activity was

as expected, but the pressure on prices in some of

the market segments has been heavier than assumed.

This applies especially to the traditional steel and

industry market in Europe, plus competition exposed

deliveries to the energy market. Even if Scana to a

large extent is able to supply the quantities we would

like to these markets, it has been very difficult to get

paid sufficiently for the quality benefit we provide. This

is due to overcapacity with the producers, making the

competition in some market segments very strong.

When Scana succeeds with our changeovers, it is

because everybody sees that change is necessary,

but not at least because everyone wishes to keep the

business running and the workplaces intact. This team

Scana’s competitive power lies in adding value for the customer when we turn high quality steel into more complete products

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Scana is an environmental business and

manufactures some of the purest and eco­

friendly steel that can be obtained, steel that

is utilized in our own products and by our

customers.

Our starting point is scrap metal, which, through

our processes, is turned into high­quality

products. It is our goal to have the smallest

possible impact on our environment, irrespective

of where in the world the production takes place.

2011 will be a demanding year. A stronger

Norwegian and Swedish Krone, compared to

important currencies, present us with extra

challenges. An improved order intake towards

the end of 2010 and into 2011 will, however, yield

return effects second half 2011. In the transition

phase we now are in, small events could however

manifest itself in our operation profit more clearly

than before. An event, that in a period of strong

economic expansion would hardly be visible, will

in this situation be noticeable. But the markets

that are most important to Scana show a gradual

improvement, making us more optimistic about

orders and profits in the coming years.

We are positioned for an exciting future!

Yours sincerely, Rolf Roverud Group CEO na I nd us trie r A S A

1652

–

2010

1652

–

2010

1652

Scana’s oldest company, Scana Booforge, is established in Karlskoga.

1656

Permission is granted to build a forge ham mer at the vismes estuary. This forms the basis for Björneborg’s growth and development.

1911

Stavanger Electro­Stålverk is established. Today, Scana Steel Stavanger AS is Norway’s only special steel works and is located in Strand municipality.

1987

Scana Industrier is founded through a merger between ScanArmatur AS and ScanPaint AS.

1989

The actuator and valve control system manufacturer Scana Skarpenord AS is taken over by Scana Industrier.

1991

Scana Industrier buys Stavanger Staal AS, now Scana Steel Stavanger AS.

1993

Scana Industrier buys Björneborgs järnverk AB, now Scana Steel Björneborg AB, one of the oldest ironworks in the world.

1994

Scana Industrier buys a company steeped in forging traditions: Booforge AB, now Scana Steel Booforge AB. Production was previously run by Alfred Nobel’s Bofors.

1995

Scana Industrier is listed on the Oslo Stock Exchange.

1996

Scana Steel Stavanger AS secures its own power supply through the licence allocation to jørpeland Kraft AS, a third of which is owned by Scana.

1997

Scana establishes itself in China through the joint venture company Leshan Scana Machinery Company Ltd.

1998

Scana buys volda Mekaniske verksted AS, now Scana volda AS.

1999

Scana signs an agreement with Caterpillar, making Scana volda a preferred supplier of propellers, reduction gears and control systems for Caterpillar’s diesel engines.

2000

The first complete year of operation for Scana Korea Hydraulic Ltd. This company has increased Scana’s market share considerably in one of the world’s largest shipbuilding nations.

2001

Scana increases its capital, which gives the company NOK 106 million in new share capital.

2002

Smedvig sells his share majority in Scana to leading employees in Scana Industrier.

2004

Scana Korea Hydraulic becomes one of five subcontractors to be given the prestigious “Quality Gold Mark” by Samsung Heavy Industries, one of the world’s largest shipyards.

2005

Scana establishes the offshore service company Scana Offshore Technology AS in collaboration with International Oilfield Services AS. The new company aims to further develop the group’s activities within service and maintenance.

2006

Scana acquires the companies “Brødrene johnsen AS” and “AMT AS”, now Scana Offshore vestby AS, in collaboration with International Oilfield Services AS. These acquisitions confirm the company’s expressed objectives for growth within oil and gas.

2008

Scana’s turnover reaches almost NOK 2.9 billion after a peak in activity in all of the groups key areas. Scana Offshore Services is established after an acquisition of business in Houston. The company strengthens Scana’s position in the USA and Singapore.

2009

Scana buys ABB’s marine activities in Poland and establishes Scana Zamech Sp.Zo.o. The acquisition strengthens and complements Scana’s activities within the business area Marine. Scana’s establishment of business in Brazil will create big opportunities for growth in an exciting market. Scana also establishes Scana Subsea delivering subsea and riser components to the oil and gas industry.

2010

Scana emphasizes consolidation and efficiency of operations to strengthen our competitive power. The order intake increases significantly towards the end of the year.

Scana is organized into three business areas with a decentralized organization, in which the

production units are separate legal entities.

BUSINESS AREAS

StEEl

Scana Steel Björneborg AB,

Sweden

forged special components.

Scana Steel Booforge AB, Sweden

Arms for forklift trucks and specia­

lised forging and heat treatment.

Scana Steel Söderfors AB, Sweden

Rolled special profiles and rolled/

forged rods and billets, mainly in

special steel.

leshan Scana Machinery ltd, China

Steel rolls and castings. Scana owns

80 %.

Scana Steel Stavanger AS, Norway

High­alloy castings and forgings, and

wear­resistant steel.

Scana Steel AB, Sweden

Manages Scana’s real estate in

Karlskoga, Sverige.

MARiNE

PROPUlSiON

Scana Volda AS, Norway

Gears, propellers and propulsion

systems.

Scana Mar-El AS, Norway

Electronic remote control systems

for the propulsion and navigation of

vessels.

Scana Zamech sp. zo. o, Poland

Gears and propeller systems.

Scana Singapore Pte. ltd.

Design, engineering, repairs and

maintenance of drilling equipment.

VAlVE CONtROl SYStEMS

Scana Skarpenord AS, Norway

Hydraulic actuators and valve control

systems.

Scana Korea Hydraulics ltd,

South Korea

Hydraulic actuators and valve control

systems. Scana owns 49 %.

Scana Skarpenord Shanghai

Service Station, China

Hydraulic actuators, valve control

systems and service.

Oil & GAS

Scana Subsea AB, Sweden

Subsea and riser systems for the oil

& gas industry.

Scana Do Brasil industrias, Brazil

Sales and marketing of Scana’s

products in Brazil and on the South

American continent.

Scana Offshore Vestby AS, Norway

Engineering, design, construction

and production of special equipment

for the petroleum industry.

Scana Offshore technology AS,

Norway

Repair, maintenance and recertifica­

tion of equipment for the oil industry.

Scana Offshore Services inc, USA

Design, engineering, repair and

maintenance of drilling equipment.

A nn ua l R ep or t 2 01 0 S ca na I nd us trie r A S A

Business

areas

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Business

areas

to be able to offer finished steel products. This gives

Scana a clear competitive advantage, which the group

will develop further.

In the period from 2008­2010, more than NOK 200

million has been invested in the steel companies. The

investments increase capacity and delivery precision,

and reduce risk and production costs. In 2010, Scana

expanded the production capacity in China with regard

to rolls and larger rings. Scana’s investments also

included a new forge manipulator at Björneborg, which

is able to handle tonnage up to 75 tonnes and lengths

up to 24 metres.

Products

Scana is a leading supplier of specialised products in

steel and customises solutions for various uses. Key

elements are close collaboration with the customer and

high quality. Scana’s technological expertise is pivotal to

the production and in connection with the development

of new, customised products. Scana’s production

capacity in terms of steel produced in­house is around

150,000 tonnes of melted material.

Scana offers a broad range of products weighing from

50 kg to 45 tonnes, in lengths up to 24 metres. Scana

is a market leader in the upper weight and length range,

particularly with regard to cylindrical products. Scana

has a large capacity within heat treatment. This renders

possible specific material qualities and extended tensile

strength, an important competitive advantage.

Markets and customers

Our special products provide us with customers among

the great international players in industries such as

marine, oil/gas and energy. Scana offers optimum

design and material alternatives, which, combined

with short delivery times and good logistics, provide a

competitive total solution.

Special steel customers are primarily steel companies,

major wholesalers and end users. Scana has entered

into several long­term collaboration agreements with a

number of key customers. This provides a good basis

for developing the business concept further.

The development is heading in the direction of

customers requesting supplies of finished products

delivered directly to their own facilities. High quality and

technical expertise, combined with precise deliveries

have all helped Scana capture a strong position in the

market.

The steel business area has a several hundred year

long tradition in the Swedish steel industry with regard

to the companies Scana Steel Björneborg, Scana Steel

Booforge and Scana Steel Söderfors, in addition to the

cooperation with Motala verkstad AB. This business

area also includes Leshan Scana Machinery Company

in China, plus the Norwegian company Scana Steel

Stavanger.

The companies each have an independent and long

history, and specialise in different production areas.

The business area supplies complete products to

workshops, the marine industry and the oil and gas

industry. Production takes place at Scana’s own

production facilities, which include melting plants,

forges, rolling mills, foundries and heat treatment and

machining units. Production is of a high standard

and complies with ISO­certified quality assurance

systems. The business is characterised by high levels of

metallurgical expertise and strong market positions in

the respective product areas.

Strategic position

Scana maintains a high standard with regard to its

production as well as a broad product range. Getting a

foothold in this industry is difficult since both production

facilities and infrastructure represent major investments,

and because it is also extremely challenging to acquire

sufficient levels of metallurgic and technical expertise.

Scana is one of few players in its area with integrated

production facilities that include both melting/production

of steel, heat treatment and machining of components.

few of Scana’s competitors have their own steelworks

and have to buy billets and semi­finished goods in order

BUSINESS AREA

STEEL

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na I nd us trie r A S A

Steel

The company was founded 354 years ago, making it

one of the group’s most venerable companies – not to

mention one of the oldest forges in the world.

Due to low demand and high pressure on prices,

following a financial recession and an economic

down turn in the heavy steel industry, the company’s

order reserve and turnover has decreased. But with

a number of cost cutting measures, the result is still

positive.

Markets and customers

Scana Steel Björneborg exports 70 % of its turnover,

directly or through other companies in the group. The

largest market is Europe, but export also goes to the

USA, Asia and other parts of the world.

The entire steel industry has throughout 2010 been

faced with a low demand and increased competition

due to a much larger capacity in both Europe and Asia.

As a consequence, the organization and crew of the

company has been adjusted accordingly and marketing

has been intensified. Scana Steel Björneborg has,

adhering to our long­term strategy, continued our work

on increasing the refinement of our products. The result

for 2010 is an increasing number of customers ordering

a higher number of finished products, especially in the

marine business area.

In 2011, a slight increase in market demand is expected.

The business as a whole will experience an increasing

forge capacity in the world. Scana Steel Björneborg will

continue to focus on established customer relations,

cooperation with other Scana companies and also on

new markets.

investments for the future

In the course of the recent three years, large,

productivity­increasing investments have been carried

out, and the majority were concluded during the

summer of 2009. Investments for increased production

capacity, more advanced testing equipment and a

better environment, has continued in 2010 as well. The

most important completed investments in the course of

2010 were:

• Upgrades of lathes for the machining workshop

• Continued development of the steelworks, part 2,

through purchase of a new transformer. Installation of

the arc oven transformer is due during summer 2011,

and for ovens some time during summer 2012. These

investments will increase capacity to 115,000 tonnes

annually.

• Upgraded equipment for heat stability testing,

completed and run­in. With this test equipment, axles

can be tested at high temperatures, meeting the

particularly high demands of energy customers.

• New CTOD test equipment for the testing of steel,

especially for customers in oil and gas. Having this

machine in­house shortens the lead­time for e.g.

risers with several weeks.

• New pendulum impact tester increasing safety and

capacity.

• New cooler intake and new dam hatches minimize the

risk of flooding and cooler liquid breakdowns.

• Equipment to ensure that no radioactive materials are

led onto the property.

Managing director: ingvar Winbo

Scana Steel Björneborg refines steel in an integrated chain that includes steelworks, heat treatment,

forge with a 4,500 tonne press and a well­equipped machining workshop.

SCANA STEEL BjÖRNEBORG

A nn ua l R ep or t 2 01 0 S ca na I nd us trie r A S A

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Investments have been carried out according to

schedule, resulting in more reliable production

equipment with a higher total capacity, plus more

advanced test facilities. The company is well prepared

for an increased demand for forged steel products

weighing up to 45 tonnes and a length of 24 metres.

increased productivity and quality

In the course of the year, Scana Steel Björneborg has

introduced “Lean Production” in all production divisions,

partly under our own auspices and partly within the

framework of a programme by Chalmers tekniske

høyskole, called “The Production Lift”. Our goal has

been to attain a high and even quality through control of

every process. This also contributes to a higher delivery

precision.

The costs for quality divergences are now less,

as a direct result of the aforementioned work, and

combined with the programme for cost reduction, this

has contributed to increased competitive power. The

programme continues through 2011, and several of

the company’s workers are involved and contribute to

the improvements. This is a continuation of the earlier

work where we systematically shorten the lead­time for

all products. The company has introduced bottleneck

control, setting a maximum limit for the number of

products at work in critical processes.

We want to ensure that the company’s workers

are highly skilled, which in turn leads to improved

quality. The company identifies critical skills using a

competence matrix, in addition to certification of specific

skills through practical and written tests. A recently

introduced salary system for employees is an incentive

to further develop one’s skills and competence.

All in all, the aforementioned measures entail that our

work in progress have decreased drastically, our delivery

precision has increased, the throughput times are

shortened and the divergences are more than halved.

Products

Scana Steel Björneborg delivers customer designed

products for four market segments: industrial, marine,

machine and energy. The company’s main products are

forged, rotation symmetrical, large and long components

of steel with a high technical content. Scana Steel

Björneborg also supplies raw forged and semi­finished

billets. The products are for instance axles, shafts, joints,

risers, poles and sheet metal.

The company’s products are often key components for

the customer, and are delivered with different degrees

of completion, depending on customer requirements.

The company has an on­going cooperation with material

institutes to further increase the quality of our products.

A nn ua l R ep or t 2 01 0 S ca na I nd us trie r A S A

Markets and customers

The company is mainly aimed at forklift truck and

machine manufacturers, as well as other steelworks.

In addition the company has customers within oil and

gas and the food industry. The customers are primarily

located in the Nordic region and in other parts of

Europe. Scana Steel Booforge exports approximately 15

% of its production. The company’s largest customers

include Cargotec, Konecranes, Svetruck, Sandvik, Alfa

Laval, Moorlink og Scana Steel Björneborg.

The market for Scana Steel Booforge’s core products –

forks, free form forging and heat treatment – has been

improved in 2010. The order intake has increased by 30

% for these products. The demand for racks and lifting

carriages was temporarily weakened as a result

of aggressive pricing from Eastern Europe.

Products

Scana Steel Booforge’s main products are:

• Forged arms for forklift trucks

• Lifting equipment for forklift trucks

• Heat treatment of larger goods

• Free form forged components

In 2010 Scana Steel Booforge also has invested in

marketing, resulting in, among other things, a new

website: www.booforge.com. The strengthening of

Scana Steel Booforge as a brand in the forklift truck

industry has increased demand and global sales. To

further expand our global activities, new sales channels

and dealer networks are being established.

A special research and development function was

established in 2010, where Booforge can perform as a

more active partner in customer collaboration in a value

chain perspective, and develop supplemental products.

With a stronger market focus, our own technological de­

ve lopment and increased efficiency in the production, Scana

Steel Booforge AB emerges well prepared for the future.

Managing director: Håkan Schill

Scana Steel Booforge is a world leader in the production of large arms for forklift trucks – arms

that can lift in excess of 10 tonnes. With Scana’s expertise in free form forging, the company can

manufacture large forks and other forged products according to any specification with stringent

demands for strength. Since 2009, Booforge also manufactures masts and lifting carriages, and

thus complete lifting systems in the heavy segment.

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The company possesses a long experience in forging,

rolling, heat treatment and machining. Scana Steel

Söderfors is located at Söderfors, north of Stockholm,

Sweden, and is close to other major steel producers.

Since 1995 the company has been a part of the Scana

group.

Markets and customers

Scana Steel Söderfors exports 50 % of its turnover.

Europe is the largest market, but also China, japan and

the USA are important markets. Scana Steel Söderfors

works in three different market segments: industry,

marine and energy. The customers are world leading

steel makers, machine builders, system suppliers,

component suppliers and wholesalers. In 2010, the

company experienced an increase in order intake, and

new deliveries with a higher processing degree have

replaced earlier production. A continued strengthening

of market and sales activities has been carried out to

meet the increased demand.

Products

Scana Steel Söderfors supplies niche products.

Our main products are forged or rolled bars and

components with a high technical content. Typical

products are shafts, rotors, plates and connectors.

furthermore, the product portfolio is expanded to

include rings and hollow bars. Also a high number of

semi­finished billets are produced, typically used for

ball bearing steel. Rolled products are found in high

alloy steel, such as round and flat profiles, with bars

in different stainless grades with emphasis on Duplex

and Super Duplex grades as the most typical product.

for a long time high­alloy tool steel and PM steel in the

form of bars, round and flat profiles have been important

products. Scana Steel Söderfors has a prominent profile

in the oil and gas product business, and in 2010, a

break­through order of connectors for riser systems

was delivered to the Snorre field.

In the course of the year, the company has invested in

additional capacity in processing equipment to meet the

increasing demand for highly processed goods.

The organisation has undergone a skill development

process with the goal of increasing the share of

processed products and meeting the demands of

strategic customers. furthermore, a new system for

process handling of internal logistics was implemented

to create opportunities and develop Scana Steel

Söderfors into a just­in­time partner for strategic

customers. These commitments make the company

well prepared for the expected increase in order intake.

Scana Steel Söderfors delivers steel profiles to

acknowledged tools manufacturers and is a leading

manufacturer of tools for the forest industry.

The company is specialised on niche products like

billets and sections of high alloy steel.

Scana Steel Söderfors AB is a specialized manufacturer of high performing, high purity and high

alloy steel for demanding applications. Warm steel forming and heat treatment of steel has a long

tradition in Söderfors. Since 1676, skilled blacksmiths have made Söderfors renowned for its high

quality products.

A nn ua l R ep or t 2 01 0 S ca na I nd us trie r A S A

Leshan manufactures rolls for the steel industry and

cast special products for the steel, energy, oil and

gas, construction and shipping industry. Leshan is a

respected supplier in the Chinese market and is among

the leading in the Chinese roll manufacturing industry.

The company has an annual capacity of 20,000 tonnes

rolls and cast products.

Leshan´s vision is to be a leading manufacturer of rolls.

This strategy entails manufacturing niche products

of a high quality. Scana collaborates closely with the

customers to develop existing and new products.

Products and market

Rolls are the company’s core product and are utilised by

Leshan’s customers to make profile steel, hot materials

and plates. Chinas entire production of steel totals

670 million tonnes, or roughly 50 % of the world’s total

production. The production is expected to increase to

more than 1,000 million tonnes towards 2020. Leshan

Scana is a strong brand and has world leading steel

producers on our client list.

In spite of surplus capacity in the Chinese market,

Leshan Scana has increased the order intake with an

excess of 300 %, compared to 2009. But substantial

competition, plus increased energy and raw materials

prices, has lessened profitability. Towards the end of

2010, Leshan Scana carried through cost reductions

and workforce downsizing to strengthen our competitive

power.

Castings are mainly used in the power generation,

petroleum, cement, construction and shipping

industries. Leshan Scana is certified according to

international class companies like DNv, ABS, LRS, Bv,

GL, RINA and NK. Scana is an important supplier of

cast nodes and connectors to several large projects in

China, like the EXPO2010 in Shanghai and Bird’s Nest

Stadium in Beijing, for the Olympic Games 2008.

The sales ratio between rolls and castings is 85 % and

15 %, respectively. Sales are largely generated from

the domestic market, but some of the production is

exported to India, Turkey, Malaysia and Taiwan. Through

cooperation with international partners, the goal is to

increase export sales considerably towards 2015.

The company has adopted and implemented the “Lean

Production” philosophy to optimise production and

reduce cost.

Leshan Scana is completing a large investment

programme for a new production line for large rings.

The project will be completed in 2011 and ensure

the company a leading role in this area as well. The

company will introduce new technology, improve

technical skills, plus strengthen product and market

development.

The investment will also bring positive side effects,

such as increasing the maximum weight of castings to

a theoretical value of 50 tonnes, and the total melting

capacity to over 100 tonnes. This will improve the

flexibility.

Managing director: Johnny Sjöström

Leshan Scana Machinery Co. was founded in 1998 and is a Norwegian­Chinese joint venture,

where Scana Industrier ASA owns 80 %. Local authorities in China own the remaining 20 %.

LESHAN SCANA MACHINERy LTD

Change of directors at Leshan: johnny Sjöstrom (at left) becomes new Managing Director at Leshan Scana. Ingvar Winbo, who works as managing director at Scana Steel Björneborg, has taken the role as new Chairman of the Board for Leshan.

na I nd us trie r A S A

Managing director: Jan-Øyvind Jørgensen

Scana Steel Stavanger’s customers are users of special steel and high alloy steel with stringent

requirements for design and documentation. These are mainly found in the oil and gas, marine,

energy, mining and general mechanical industries.

SCANA STEEL STAvANGER

Scana Steel Stavanger was founded in 1910 and has

produced steel since 1913. The business is located at

jørpeland, near Stavanger, Norway. The company’s

business concept was based on the idea of remelting

scrap steel from the local cannery industry and ship

scrapping. Scana Industrier bought the company in 1991.

Markets and customers

Scana Steel Stavanger operates in a global market, but

the majority of our customers are in Scandinavia and

northern Europe. The company competes in the market

of high alloy forged components and complex, cast,

special components. Scana Steel Stavanger AS is, in

addition to Scana Leshan in China, the only company in

Scana with a foundry.

In 2010, Scana Steel Stavanger had an export share of

65 %, with the main export going to the UK, Sweden

and Germany. There is tough competition in the market.

Scana’s competitive edge is that we are a relatively small

player able to produce small series, where quality and

delivery times are vital. Our deliveries are often special

products, custom made to meet the client’s needs.

In 2010, the company secured its first steel delivery

contract to the down­hole product “Liner hanger”.

A nn ua l R ep or t 2 01 0 S ca na I nd us trie r A S A

Scana Steel Stavanger AS has secured a contract for delivering protective components to the downfall pits at a new crushing level for LKAB’s processing facilities at Kiruna.

With extreme demands for corrosion and mechanical

properties, this is a product that fits the company’s

strategy of higher alloy and processing degrees in

products.

furthermore, Scana Steel Stavanger AS has in 2010

secured large contracts in the mining industry. The

contract with LKAB in Sweden to adjust the crushing

level at the site in Kiruna was important. These deliveries

are due in 2011.

Aker Solutions has awarded the company several large

orders for delivering anchor handling equipment, where

the end customer is, among others, Petrobras in Brazil.

Scana Steel Stavanger AS also landed contracts for

integrals with jack & St. Malo at the end of 2010, to be

delivered spring and summer 2011.

ELG Carrs in the UK tripled the order volume of Scana

Steel Stavanger AS from 2009 to 2010 of forged

products of the material quality Super Duplex.

for Scana Steel Stavanger AS, 2010 started off with

7 weak months, followed by 5 months of higher order

intake and activity. The order intake in 2010 was

40 % higher than in 2009. The company views 2011

with optimism and a higher predictability in the market.

The company owns 35,000 m

_{of real estate in total.}

This mainly consists of industrial premises, with

additional office and service areas. The business is

located on the old industrial site of Bofors, and the

properties were acquired in 1997, when Scana bought a

part of Bofors AB.

After structural changes in the defence industry, a need

has arisen to see new activity in the halls; to replace the

existing tenants’ lessened need for rented area.

Services

Today, six external companies rent areas for a total of

23,000 m

_{. The remaining areas are rented and utilised}

by Scana Steel Booforge AB.

Today, two companies are operating on the premises,

on a surface area covering just over 15,000 m

_.

One of these companies are KGA Logistik AB, owned

by Galatea Spirits AB. KGA Logistik AB is one of the five

largest distributors of beer, wine and spirits in Sweden.

logistics and geography

from a Swedish perspective, Karlskoga is located

almost in the middle of a centre for logistics. And with

the improved road E18 towards Örebro and Karlskoga,

Karlskoga today represents a strong, competitive

alternative to other closely situated places.

Business has been positive in 2010 for Scana Steel AB

and its tenants. Especially the logistics companies have

seen a positive development and are asking for larger areas.

Scana Steel AB is a small, prospering and cost efficient real estate firm that manages Scana’s

real estate in Karlskoga, north­east of väneren in Sweden.

na I nd us trie r A S A

The Marine business area consists of companies that

supply equipment and services for ship propulsion and

manoeuvring. The core market of the business area is in

the shipping industry, and key customers are shipyards,

shipping companies and agencies. The business area

also supplies products such as valve control systems to

the oil and gas industry.

Strategic position

The business area is an important market player

that can supply complete and technically leading

solutions and has a presence in the most central

markets. Within the product area Scana Propulsion,

Scana will coordinate sales, marketing, purchases,

product development and manufacture concerning

propellers, gears, thrusters and remote control. The

steel companies have products that are components in

the propulsion companies’ products, and this renders

possible a considerable value chain control and added

value within the Scana group.

Products

Scana develop, produce and delivers controllable pitch

propellers, reducuction gears, tunnel thrusters, hydraulic

activators, ship propulsion and manoeuvring systems for

new constructions, re­constructions and repairs.

Markets and customers

The business area operates primarily in the global

shipbuilding and ship repair markets. Our customers

BUSINESS AREA

MARINE

Scana Propulsion is one of Europe’s leading manufacturers of ship propulsion and manoeuvring systems. We supply systems to most vessel types, from fast boats and yachts to fishing boats, ferries and special ships within the oil and gas business. The image shows construction of electronic control systems at Scana Mar­El AS in Dalen, Norway. A nn ua l R ep or t 2 01 0 S ca na I nd us trie r A S A

are shipyards, shipping companies, consultancy firms

or other system suppliers. Scana has sales offices

in Singapore, China, Korea, the USA and Brazil.

Establishing a representation office in Shanghai for sale

and service of gears and propulsion systems has proven

to be a strategic success, given Scana’s strengthened

position in the Asian market, both commercially and

technically. Through our own facilities and an extensive

agent and distributor network, the business area has

developed a worldwide representation network.

2010 has seen a bustling activity in the completion

of ships in Asia, based on contracts entered during

the contract boom of 2006­2009. In 2009 and 2010,

however, the number of new contracts has been the

lowest in a 10­year perspective. The combination of a

high number of cancelled orders and a global order

deficiency has led to economic difficulties and bank­

ruptcies for several shipyards, globally. This has in turn

reduced delivery times from 2­3 years to approximately

1 year. Contracts signed in 2010 are mainly for deliveries

in 2011, except for series stretching into 2013.

Scana has so far suffered only to a limited extent from

financial crisis cancellations in Norway or globally. fewer

new contracts the recent two years have, however, made

the market for Scana’s products dwindle. This effect will

spill over into 2011, but demand is expected to increase

gradually towards the end of the year. Scana’s increased

focus on service and maintenance will dampen the effect

of temporarily reduced new sales.

Marine

The companies that form Scana Propulsion are:

Scana Volda, formerly volda Mekaniske verksted, was

established in 1913 in volda, Norway, and was taken

over by the Scana group in 1998. volda Mek. started

as an engine factory and later developed into including

shipbuilding and production of propellers and gears. At

the end of the 1980s, the last hull was delivered – and

the shipyard was removed in 1997.

Since 1966, gears and propulsion systems have been

the most important products. Scana volda has been a

Consortial Partner to MaK (Caterpillar) since 1996. from

2009 Scana volda has held a leading role in the product

group Scana Propulsion, which also consists of Scana

Mar­El, Scana Zamech in Elblag, Poland, and Scana

Singapore.

Scana Mar-El is located in Dalen in Telemark,

Norway, and has been a part of Scana Industrier ASA

since 1996. Scana Mar­El is one of Europe’s leading

manufacturers of maritime control systems for ship

propulsion and manoeuvering, in addition to control

systems for special applications. Since the start in 1974,

the company has delivered about 3,000 control and

navigational systems.

Scana Zamech’s origins date back to 1837 when

ferdi nand Gotlob Schichau opened the machine work­

shop “Schichau Werke” in Elblag, Poland. The work shop

manufactured elements for steam engines, equipment

for sugar factories, oil mills and lumber mills as well as

hydraulic presses and rollers. In 1855, the first seagoing

ship with a steel hull and a propeller was launched

from “Schichau Werke”. Scana Industrier ASA acquired

the company in 2009. The company has an extensive

service activity, in addition to being responsi ble for Scana

Propulsion’s sales to Poland, the Baltic and Russia.

Scana Singapore was established in 1996 and is

owned 100 % by Scana. The company is responsible

for sales and service on Scana’s marine products in

South­East Asia. Personnel local to the area perform

product service and installation, in addition to service on

related products for external companies.

Scana Volda, managing director: Kristian Sætre Scana Mar-El, managing director: Egil Kongsbakk Scana Zamech, managing director: Jacek Pabian

The product area Scana Propulsion was established to coordinate and increase the market interest

for Scana’s propulsion technology: propellers, gears, thrusters and remote control. Scana

Propulsion is marketed as a complete equipment package in the global ship equipment market.

The restucturing will continue through 2011.

SCANA PROPULSION

Solstad Offshores Normand Pioneer har en motorkapasitet på 27 900 hk og er utrustet med en 140 tonns kran. Dette gjør skipet særlig egnet til konstruksjonsarbeid på havbunnen. Scana Volda AS har levert gir til Normand Pioneer og en rekke andre fartøy hos Solstad Offshore AS.

na I nd us trie r A S A

the product area Scana Propulsion is represented

through offices, strategic partners and agents

throughout Norway, Poland, Iceland, the Netherlands,

Turkey, Singapore, India, China, Korea, the USA,

Brazil and Chile. By structuring our organisation in

this manner, Scana Propulsion can nurture closer

relationships with customers regarding both sales and

service preparedness for the marine fleet.

Scana Marine Service is a special profit centre in the

group and performs service and after market activities

to the product area. Scana Marine Service has service

personnel at every sales office, in addition to service

agreements with independent companies in selected

markets.

The companies constituting Scana Propulsion have

gained a good international reputation and export 80 %

of their products, in total.

Markets and customers

Scana Propulsion’s core segment is offshore, merchant

vessels, speedboats, passenger ships and fishery.

Geographically, the main activity is located in Asia, with

China as the largest building market, involving European

shipyards and design firms. In Brazil, there is a bustling

activity in the offshore and merchant segment as a

result of Petrobras’ extensive development programme.

This is an important market for Scana Propulsion.

Scana Propulsion’s hallmark is technologically advanced

solutions and a strong market position for ships for

demanding operations, like anchor handling vessels and

other special vessels.

Scana Propulsion is marketed as a complete equipment

package in the global ship equipment market, but the

products are also independent units. Gears from Scana

volda are an example of a strong brand in the market,

and similarly, control systems from Scana Mar­El and

thrusters from Scana Zamech.

In collaboration with Caterpillar, Scana offers complete

propulsion packages for ships, consisting of engine,

gears, propellers, axles, tunnel thrusters and propulsion

control. A close collaboration with ship designers and

leading electronic suppliers has created a strong focus

on developing products that are a part of eco­friendly

hybrid and diesel­electric propulsion systems.

Among our partners, there is a great interest in

develop ing propulsion solutions in collaboration with

Scana. A continued commitment to complete packages

within hybrid and diesel­electric solutions is expected

to yield in creased results. Scana Propulsion’s product

line is “drawn in” with several design firms, and they are

marke ting these products in different ship design for

their clients.

Scana Marine Service has a strong commitment to

selling service to the global market. This commitment

has yielded positive results. Synergies between the

propulsion companies and a continued international

commitment are expected to increase turnover and

profit for the service organisation. Sales and marketing

of service is aimed mainly at Scana’s own products, in

the form of start­up, maintenance, replacements and

shipwrecking, plus other special services and inspection.

2010 was a challenging year, with a low order intake and,

globally, a high number of planned builds cancellations.

Scana Propulsion is not untouched by this situation. But

because of a large share of contracts with the offshore

fleet, the largest cancellation wave among bulk and

cargo vessels has been avoided. In 2010, the company

signed important strategic orders within the Scana

commitment areas offshore and special vessels with,

among others, Brazil, China, Singapore and Norway.

As a consequence of the general market development

in the recent years, Scana Propulsion is expecting a

prudent turnover growth for 2011. Our commitment within

service counteracts a lower activity within new sales.

Products

The product line of Scana Propulsion:

• Controllable pitch propellers from 520-1900 mm hub

diameter (8 metre max outer diameter)

• Fixed propellers in diesel-electric propulsion systems

with gears

• Reduction gears up to 20,000 kW engine output

• Tunnel thrusters up to 3,000 mm diameter and 3,000

kW

• Maritime control systems for ship propulsion and

manoeuvring

• Rudder control, control machines, thrusters controls

• Joystick systems

• Agency agreements for positioning sensors, joysticks

and instrumentation

• Service and customer support:

– Planned repairs and maintenance at dry docks

– Service according to customer wishes and demands

– Rebuildings and modernisations for increased safety

and better operations economy, plus eco­friendly

solutions

– Parts

– Training, consultation and surveillance

Product development

In the market for high­technological solutions,

development is of paramount importance – especially

development governed by specifications from the

customer. Consequently, Scana Propulsion has

continuous product development and upgrade as an

integral part of the group’s work. Deliveries are adapted

to each ship and are detailed in collaboration with

shipowners and ship designers. The development team

for mechanical solutions in Scana Propulsion is located

at Scana volda, who develops, projects, manufactures

and sells propulsion solutions for all ship types, in a

scale of up to 20,000 kW engine output. The group also

has a department at Scana Mar­El for developing and

manufacturing remote control systems.

Scana Mar­El has an agency department that sells

components of a very high quality. These are utilised

within offshore, telecommunications, energy, sea and

land based defence installations and other industry.

The department represents large international players in

advanced, high­tech components and has technological

firms in Norway in its customer portfolio.

Scana Propulsion has a strong market focus and

frequently commercialises new products. In 2010,

Scana delivered the first contract for a new, high­tech,

remote controlled system as a replacement for an

existing system, making the company ready to supply

to a increasingly demanding and complex market. Later,

the joystick system Marco v was introduced, a product

sparking great interest in the market.

A nn ua l R ep or t 2 01 0 S ca na I nd us trie r A S A

important new orders in 2010

Scana entered a contract with Ulstein verft AS for the

supply of remote controlled gear and propeller systems

for seismic vessels for the shipping company Polarcus.

The design is Ulstein SX134 from Ulstein Design &

Solutions, having the characteristic X­Bow hull. This

contract strengthens Scana’s position as market leader

in the advanced ship operations segment. The delivery

is for a market segment tending towards eco­friendly

and flexible systems through the use of diesel­electric

solutions.

Scana entered a contract with STX OSv AS for the

delivery of remote controlled gear and propeller systems

for three anchor handling vessels for Norskan Offshore

in Brazil. The ships will be built in Brazil, commissioned

by Petrobras. This is a strategically important delivery

for the activity in Brazil, in the segment for advanced

offshore vessels.

Scana signed a contract with the Turkish shipyard

Tersan Shipyard for the delivery of complete propulsion

systems, consisting of gears, propeller, tunnel thrusters

and remote control for a longliner for the shipping

company frøyanes AS. The propulsion system is a

diesel­electric solution with Siemens electromotors,

giving the vessel a fuel saving solution with great

flexibility.

Scana has signed several contracts for single units of

tunnel thrusters and controllable pitch propellers.

A contract for propeller delivery was signed with

Northern Shipyard in Poland for equipment to a rescue

vessel. The delivery consists of two controllable pitch

propellers and one fixed pitch propeller with an axle

system, each propeller with a diameter of 1,700 mm.

With the polish Gdansk Shiprepair yard “Remontowa”,

a contract was signed to deliver tunnel thrusters for

two supply vessels, with an option for deliveries for

an additional two ships. The vessels will be operated

by Ezra Holding Ltd. from Singapore. The delivery

for each ship is four controllable pitch thrusters with

remote control and DP­demands. This is a delivery to a

commitment area in an important geographical market

and confirms Scana’s position as an international player

in a demanding market.

In 2010, we delivered 2 out of a total of 8 deliveries for

bulk ships at Nantong Mingde Heavy Industry Stock

Co. Ltd. in China. The delivery was for controllable pitch

propellers and tunnel thrusters. The shipyard is the

polish Polsteam.

A nn ua l R ep or t 2 01 0 S ca na I nd us trie r A S A

Managing director: Ragnar Øhrn

Scana Skarpenord was originally established as a subsidiary of Norsk Hydro, Rjukan fabrikker, in

the late 60’s. The company has been on the market with its current product range since the middle

of the 70’s, and is among the leading suppliers of hydraulic valve systems for the ship and oil & gas

industry. Scana Industrier ASA took control of the company in 1989.

SCANA SKARPENORD

In 2010, the company has adapted the organisation to

a tighter market, due to changes in the world economy

the recent years. The company has strengthened its

competitive power through increasing its efficiency, and

is now competitive in a rising market.

Products and services

The company develops, manufactures and supplies

hydraulic systems for remote control of valves in cargo,

ballast boom and coolant systems on board tankers

and dry cargo ships. The remote control systems are

also installed in production ships, rigs and permanent

offshore installations.

One of our key products is hydraulic actuators, mounted

directly on valves. The actuators are one of our designs

and manufactured at Rjukan. The control systems

for the actuators include magnetic valve centrals,

oil generators and PC­based terminals for system

operation.

There are no other concepts or technologies today

that can replace the company’s products, and they will

remain highly relevant in the foreseeable future.

The company has a strong commitment to after sales

and service. The organisation is well prepared to deliver

na I nd us trie r A S A

tailor­made solutions for customer adapted applications

and short delivery times.

Development

To meet competition and demands for cost efficient

solutions, the company has a continuous programme

for developing and improving products and production

methods. The development is largely made in

collaboration with external partners with a strong

competence within the subject fields.

PC and PLS based control systems are improved and

adapted to the customer’s demands for functionality.

The market demand for large packages, with integrated

level measuring systems, among other things, has led

to our development of a total concept, encompassing

several functions.

An increasing share of machining is done by fully

automatic, unmanned machines. Manual installation

work is made more efficient by improved methods and

effective remedy use.

Efficiency and flexibility are strengthened throughout

the entire value chain – from sales and manufacture,

to logistics and delivery of the finished product. The

company has adopted and implemented systems and

routines adhering to the “Lean Production” philosophy.

Markets and customers

The company’s traditional customers are shipyards

building larger ships (all types of tankers and dry cargo

ships) and offshore vessels (rigs, drill ships and fPSOs).

The company has also delivered valve control systems

for permanent installations in the North Sea.

The main market is China and Korea, while Singapore

and Brazil is expected to become more important in the

years to come. The company also supplies equipment

to customers in Norway, Germany, Croatia, Spain,

Turkey, Russia and North America.

The market in South Korea is served by the subsidiary

Scana Korea Hydraulics Ltd. Scana Skarpenord

supplies system solutions and key components from

Norway, while sales, engineering, assembly and testing

is performed by the subsidiary in South­Korea. In 2010,

the company has secured significant deliveries to Total’s

fPSO at the Clov field, commissioned by Daewoo.

Aside from shipyards and suppliers in the yard industry,

shipowners are an important customer group, because

they directly choose equipment for their ships based on

quality, reliability and lifespan costs.

Hydraulic actuators and parts for these kinds of systems

are also supplied to valve producers and suppliers of

gas handling systems for LPG and LNG ships. Other

suppliers offering complete packages to the shipyards

for rebuilds, upgrades and modifications of the vessels

are also important customers.

Global network

In addition to the factory in South Korea, Scana

Skarpenord has a sales and service office in Shanghai

and employees in Singapore. The company also actively

utilises the offices of the Scana group in Brazil and

Houston regarding marketing, sales, spare parts and

service, in addition to a network of agents giving global

coverage.

The managing directors at Skarpenord and Korea, Ragnar Øhrn and H. B. Noh, discussing technical solutions in the factory halls.

Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) in the vicinity of Pusan in South Korea, is one of the world’s largest ship builders and one of the top three in Korea.

Scana Korea was established as a joint venture

company in 1998. The company was at the time a

minor supplier of valve remote control systems in Korea.

At present, the market share in Korea has reached

approximately 25 %. Consequently, the company is the

2nd largest local supplier in Korea. Scana’s ownership

is 49 %.

In 2010, the company has renewed the highest possible

qualification among Samsung shipyard suppliers. The

company’s order intake in 2010 is strengthened as a

result of good competitive power and several contracts

in South Korea, securing a robust order reserve

for 2011. By the end of 2010, the company had 50

employees and a turnover of NOK 180 million and a

satisfactory operating result.

Markets and customers

Scana Korea’s key customers are shipyards that build

larger types of ships, such as tankers, LNG tankers,

LNG carriers, LPG carriers, bulk carriers and large

offshore vessels, such as fPSOs (production ships),

rigs etc. The main customers are currently shipyards

at Hyundai, Samsung, DSME, STX, Hyundai­Mipo,

Hyundai­Samho, SPP and other medium and small

sized shipyards in Korea.

In 2010, the company successfully completed

sophisticated valve remote control systems to two huge

fPSO projects (Pazflor and Usan). In 2011, the CLOv

project will be of prominent importance. Major Korean

shipyards are working on several offshore projects that

Scana Korea Hydraulic Ltd. will tender for.

Products and services

No other products or technologies can currently be

substituted for the company’s products. They will

generate a high level of interest in the foreseeable future.

The company includes tank level gauging systems in a

package delivery with valve remote control systems, and

as a result, the contract volume per project is increased.

Managing director: H. B. Noh

The company develops, manufactures and supplies systems for remote control of valves in cargo,

ballast and other systems for ships, offshore vessels and permanent offshore installations.

SCANA KOREA HyDRAULIC LTD.

The LNG­ship Iberica Knutsen was built at the Daewoo shipyard in South Korea. Scana Skarpenord AS and Scana Korea has supplied systems for remote control for both this and several other ships in the Knutsen OAS fleet.

A nn ua l R ep or t 2 01 0 S ca na I nd us trie r A S A