Innovation creates future achievement, Cooperation to win in global market

Preface: In recent years, Chinese shipbuilding industry has been developed rapidly. According to current growth rate, it is expected to surpass South Korea and Japan in about 2010; and become the world’s leader in the shipbuilding industry. Most of large ships manufactured by China will be classed by DNV before launching. Meanwhile, DNV and China work closely in the field of offshore engineering and also make a great progress. China has become the most important market for DNV. DNV will continue to strengthen cooperation with Chinese companies and support the development of Chinese companies.

In China; DNV concentrates on innovation and cooperation. By developing and researching on new technology, DNV widens the services to meet increasing demand from various customers. By cooperating with the China Classification Society, shipping companies, shipyards, and other related enterprises; DNV enhances its impacts on the shipping industry.

 

 In 2007 COSCO annual meeting, DNV and the COSCO Shipyard Group has signed an agreement on strategic cooperation. Its primary purpose is to strengthen cooperation between the DNV and the COSCO Shipyard Group in shipbuilding and offshore engineering field. During the conference, reporter from Shippingchina.com has the honor to interview Mr. Bjorn K.Haugland DNV vice president and Regional Manager for Greater China. Through the interview, the reporter has fully understood the current development of DNV and also the blue print of future development of DNV.

 

 Reporter: First of all, can you tell us something about the current situation and the development process of DNV in China?

 

 Bjorn K.Haugland: Founded in 1864 in Norway, DNV is a non-profit foundation, providing risk management services. By now, it has become a global organization with over 300 offices in more than 130 countries. It has 7,500 employees from over 80 nationalities.

 

 

DNV is a foundation. The majority of our profit will be re-invested into research and development, staff development, business development and contribute to the society and so on.

We pay great attention to international cooperation, especially with Chinese enterprises. Recently the joint venture between DNV and China Classification Society (CCS) CCS-DNV Technology Institute was officially opened in Shanghai. It is a typical example. In addition, DNV signed a strategic cooperation agreement with COSCO Shipyard Group in the conference yesterday can be another example.

 

Reporter: As you mentioned earlier, part of DNV revenue has been contributed to social well being, can you tell us more about that please?

 

 Bjorn K.Haugland: DNV has version, which states as Global impact for safe and sustainable future. Our purpose is Safeguard life, property and environment. The purpose has been followed since DNV's establishment in 1864. It is also the operation principles and direction of development for DNV including all offices over 100 countries and regions worldwide. In China, we have been cooperating with the Red Cross since 2004. Take the project in Jilin for example; we cooperate with the Red Cross to improve drinking water equipment and sanitation facility, as a result the living standard of local residents has been greatly improved.

 

 

Reporter: With over 100 years of development history of DNV, what experience have DNV accumulated, and what are the advantages comparing with others?

 

 Bjorn K.Haugland: We are unique as we are a non-profit foundation. We invest a lot on R & D, therefore, we can develop new technologies, mark of new rule. Particularly in complex ship types and offshore engineering field we have achieved outstanding achievements. It reflects huge advantages by comparing with other classification societies. In these two areas, we can provide Chinese enterprises great support.

 

 At present, there are many Chinese shipyards built ships classed by DNV. For example, recently the BW’s four world largest VLOCS and two VLCCs to be built by Bohai Shipyard will be classed by DNV. In addition, Guangzhou Longxue and Shanghai Changxing, the two emerging Shipbuilding Base also have good relationships with us.

      

Reporter: There is an old saying in Chinese: Two of trades seldom agree. Could you give us your point of view on the competition and cooperation between DNV and other competitors?

 

 

Reporter: In recent years, international trade, shipping and ship manufacturing industries are developing rapidly. Could you tell us the development direction of DNV in next few years?

 

 Bjorn K.Haugland: Yes, Chinese economy has made a rapid development; especially the needs for energy, science and technology have brought us opportunities and challenges. DNV has accumulated rich experience and competence in the development process of more than 100 years. In next few years, oriented by market needs, we will continue our development and innovation to meet our clients' needs. On the other hand, we can also export these new technology and services to other countries.

 

 Reporter: The ship life cycle identified by NK is 10 years, while the ship life cycle identified by CCS is 14 years. What is the regulation of DNV on this issue?

 

 Bjorn K.Haugland: The standard of ship classification will be more unified. The life cycle you have mentioned may be only the ship owners' operational styles. The real life cycle of one ship can be 25 years,40 years and 45 years according to different ship models. 

 

 Reporter: Could you give us a detailed introduction about the strategic cooperation agreement signed by DNV and COSCO Shipyard Group?

 

 Bjorn K.Haugland: We have set up a long-term cooperation with COSCO Shipyard Group, which refers to Ship Repair at first. Subsequently, we have also made an extended cooperation on ship manufacturing and offshore projects. The agreement signed this time reflects the powerful combination and propels a closer and more strategic cooperation between the two parties. We are very glad to achieve this agreement with COSCO Shipyard Group and I also believe that this agreement will positively influence the ship manufacturing industry and offshore engineering industry of China.

 

 Reporter: Finally, could you please generalize the management concepts of DNV with one sentence?

 

 Bjorn K.Haugland: Cohesion is the core concept of the management in DNV by which we set up our vision, purpose and values.  

 

 

Bjorn K.Haugland: It's a good question. Competition will always exist. It is the drive of development and improvement. All participants can improve their product and service quality through competition. At the same time, the cooperation is necessary, too. All related enterprises can work together under the general framework of IACS(International Association of Classification Society), in order to provide better services to customers. 

 

The above example is only one aspect of DNV’s practice on corporate social responsibility. The second major aspect is our training system. We have already established DNV Academy network in Dalian, Shanghai, Hong Kong, Guangzhou. The main target groups including ship designers,  technical people from ship owners, shipping management companies and shipyards. We also set up scholarship system in Harbin Engineering University, Shanghai JiaoTong University; in order to encourage and train talents for shipping industry, to upgrade the dfvelopment of the shippingbuilding industry.

 

 

The third major aspect of DNV is customer support. At the end of last year, with our help, COSCO Group became the first state-owned enterprise in China to release sustainable development report according to GRI principles under United Nations Global Compact, COSCO set up a complete sustainable development management system. We are exited to see that COSCO is in the rapid development of this area. Captain Wei Jiafu President of COSCO said: The establishment of sustainable development management system meant that COSCO Group can be listed among the top-grade enterprise in the world and stand-to-shoulder with giants of industry.

 

The Region Greater China has been the largest region out of Norway. The first office in China was founded in Xiamen in 1888. Now, DNV has 36 offices covering over 20 cities in China. It has 700 employees in the region. DNV has been developing rapidly in China; it has expanded its initial ship-class services to certification services, technology and consultation services, safety and environment services, software and global IT services, and other related fields.