“Ships are still going to be built in Norway, but we must be at the forefront when it comes to creativity and innovation,” states Gunvor Ulstein, the CEO of the Ulstein Group. “We have tradition and shipbuilding in our veins and we’ll survive.”
DNV Forum met an enthusiastic Gunvor Ulstein at this year’s NorShipping exhibition. The 38-year-old is the CEO of the Ulstein Group, which is located in Ulsteinvik, at the island Hareid off the West Coast of Norway.
After graduating from the Norwegian School of Economics and Business Administration (NHH) in Bergen, Norway, she worked her way up in the family company until she in 1999 was asked by her father – chairman of the board, Idar Ulstein – whether she wanted to take over as CEO of the “new” Ulstein Group (see fact box).
“I was given just 10 minutes to make up my mind,” she says. “My father’s philosophy is that you either like an idea immediately and accept the offer, or you’re not the right person.”
Anyway, she said yes and has since then, among other things, been awarded the prize as ‘Business woman of the year’ in Norway. The jury commented that: “She is extremely enterprising and active and has a huge work capacity. A dynamic and energetic person, she has a very good understanding of the business she manages.” She was obviously a good choise by Idar Ulstein.
Impressing the maritime world
Ships have been built for the global market for generations in Ulsteinvik. Shipowners from all corners of the world have been impressed by the innovation and competitive ability to be found on this island. Shipping companies from all over the world come here to order offshore vessels – even from Korea and China, which have the world’s biggest shipbuilding environment in their backyards.
Running a family-owned company must be a multi-faceted challenge?
“There are no doubt some other factors to be taken into account than in a normal stock listed or limited company. The family dimension is very good if the members manage to cooperate and work towards common goals – and we do, thankfully. The family aspect provides an extra positive dimension, which in our case generates additional energy. But, naturally, it’s challenging to have several generations of a large family, all of whom are entitled to give their opinion,” she says.
Her elder brother, Tore Ulstein, is currently the Group’s deputy CEO and managing director of Ulstein International, and it is clear that these two work well together and that the chemistry between them is good.
“In a family company like ours, we think about the generations to come and our employees. What we have is in a way on loan. It’s something we have to safeguard for the future.”
However, she does not hide the fact that, as a family company in a small town, the Group’s social responsibility is different to that of most of its competitors. “The best way I can demonstrate our social responsibility is to ensure that the Group stays profitable and thus safeguard jobs,” she states, adding that they naturally also do all they can to ensure that the local community can develop.
Ms Ulstein believes that limitations are something one imposes on oneself, and that there are great opportunities working from Norway. What is important in a global perspective is that conditions are such that companies have a level playing field.
“We collaborate when we can, and compete when we have to. This leverages our market position and strengthens our feeling of solidarity with the Norwegian maritime cluster,” she comments.
Renowned for innovation
At the NorShipping exhibition the Ulstein Group – as last year – won the ‘Ship of the year’ prize. This year for its Normand Seven; a Vik-Sandvik design VS 4220 OCV. The jury pointed out that the ship has raised the Norwegian yard industry into a new, future-oriented niche. Handing over the prize, Norwegian Minister of Trade and Industry Dag Terje Andersen emphasised that Ulstein always does its best, and plays an important role in the Norwegian maritime cluster’s efforts to promote Norway’s maritime industry.
What is important for encouraging innovation?
“A prize like this is extremely valuable – it’s nice and draws attention to us. But we don’t make our living from prizes,” she underlines. “We make our living from innovative ship designs.”
She says there are three aspects which must be present in order for innovation to take place: “One must have the desire, the ability and be allowed to experiment. And all these aspects are equally important. In addition, it’s important for a company like ours to be tolerant, have an open work environment and lots of good humour. These factors make conditions suitable for positive and good vibrations and innovative agility.”
She does not get provoked by employees having time for informal communication in the office.
“That’s often when the best ideas come up,” she says.
Done their homework
How do you prepare for the future?
“The world is getting smaller and growth is important for our long term survival, but for us it’s not a goal in itself to be huge,” she says, continuing: “Now we’ve done our preparations, and we’re ready to move on.”
The Ulstein Group is heavily involved in the offshore sector and wants to continue focusing on this segment. Recently, Eidesvik ordered two large, state-of-the-art seismic vessels of the type ULSTEIN SX120. The contract’s total value is about NOK 1.3 billion and the ships will be delivered in the spring of 2010.
“This contract has strengthened our position in the seismic market – a market that is highly interesting and important for us,” says Ms Ulstein, “but we need more legs to stand on, both as regards products, services and geographical locations.”
Under her management, the Group is now going to extend its product and service range and enter the short sea shipping segment. Her brother Tore Ulstein will play a key role here.
Ever since the new Ulstein Group saw the light in 1999, it has gradually expanded its product and service portefolio and operations in Norway, as well as in Brazil, Turkey, Slovakia, Poland and China.
Says Tore Ulstein: “Ulstein International will be the Group’s leader in its global endeavours, and important tasks will be acquisitions and mergers in addition to continuous international business development for the whole group”.
As regards geographical locations, the plans are also clear. The Ulstein Group has been represented in China for 5-6 years and is now going to further develop an existing collaboration with a group of yards. Brazil has a large offshore environment and the Group has also been represented in this country for a few years. It is now making efforts to gain access to shipyard capacity here without acquisitions. In addition, exciting developments are taking place i.e. in Turkey, and the Group is now making arrangements to increase its impact here.
Excellent relationship
DNV has been present at Ulsteinvik since 1969 and has accompanied the Group during its interesting developments.
”We have an excellent relationship, but we have had our discussions – and that’s the way it should be. DNV is an exciting organisation with lots of expertise. Together, we can continue to help strengthen the Norwegian maritime industry,” concludes Ms Ulstein, who is currently also the Vice Chairman of the DNV Council.
