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Zaliv Shipbuilding plant of the name B.Ye. Butoma
Kamysh-Burun Shipyard

    1, Tankistov str. 
    1  Kerch, 334504, Ukraine 
    fax (380 6561) 2 03 08, 3 30 60

Public Joint Stock Company Shipyard Zaliv is one of the leading shipbuilding enterprises in the Eastern Europe. OTP Bank has financed several shipbuilding projects for Damen Shipyards Bergum in previous years, and in 2011-2012 for Bergen Group BMV.

During the Soviet era this Ukrainian shipyard built Krivak-class destroyers. With the breakup of the Soviet Union, Ukraine largely ceased work in this field. Various projects of naval vessels included the flag-ship of Ukrainian Navy large anti-submarine vessel Hetman Sagaydachniy - a Krivak III (FFG) frigate (patrol). The shipyard is named after Boris Ye. Butoma, who for many years was the Soviet Minister of the Shipbuilding Industry.

Crimea is capable of building large Mistral-class helicopter carriers, the regions Industry Minister Andrei Vasyuta told RIA Novosti news agency 28 April 2016. The Zaliv plant in Kerch is a one-of-a-kind facility with slipways and a dry dock you wont find anywhere else in Russia. The whole issue of Mistral orders would have never come up if we had a plant like this five years ago, Vasyuta said. The 360mx60m dry dock is big enough to build several ships all at the same time. The plant can also construct large ships like Mistrals. All we need is the knowhow and concrete projects to work on, the Minister added.

Andrei Vasyuta said that the local shipyards had suffered from neglect when Crimea was part of Ukraine, and needed a serious upgrade. Theres been a great deal of wear and tear during the 23 years the peninsula remained part of Ukraine. These enterprises suffered from technological degradation, falling orders and a dangerous brain drain as many qualified specialists had left looking for better-paid jobs elsewhere and started getting back only after Crimea reunited with Russia in 2014, Vasyuta added.

A traditional builder of naval frigates, the Zaliv plant has in the past two decades switched to the construction of bulk carriers, offshore oil rigs and engaged in repair work. By 2016 the plant was fulfilling construction orders for two rescue ships and as many oil tankers. Work on two aluminum-hull passenger ship was slated to start shortly.

Located in Kerch, in Eastern Crimea, this yard is a leading producer of tankers of up to 80,000 dwt. The largest ship which it has built is a 150,000 dwt tanker. The Ukrainian shipbuilding companies mostly build vessels to orders. Ukrainian shipbuilding, like all branches of Ukrainian economy, faced serious problems: a fall in work load, increased debt to the state budget and partners, arrears in wage payments, strikes resulting from social tension at a number of enterprises, the stoppage of work at Zaliv shipyard in Kerch.

For more than 70 years the Yard operated successfully in shipbuilding and ship repairing market. Past production programs included construction of torpedo boats, mine sweepers, barges and fishing boats which were launched by crane then.

JSC Zaliv Shipyard was founded in 1938. It is situated on the shore of the Kerch Strait, between two seas, the Black Sea and the Sea of Azov, in a bay protected against eastern winds. Its territory is more than 140 hectares. Zalivs territory was formed during dredging of the Kerch Strait and creating artificial land. The area of the territory is more than 260 hectares.

Zalivs primarily was oriented at repair and modernisation of the USSR sea fleet. Up to 1941 the shipyard repaired vessels of the Black sea and Azov sea basin and reconstructed torpedo boats, and during World War II the shipyard repaired and reequipped ships, manufactured fire-arms and ammunition.

After restoring the production buildings, destroyed during the War the shipyard started to construct non-self-propelled barges and then fishing vessels of 150-500 t water displacement.

In 1950 new production shops were put into operation: mechanical, pipe-shop, outfitting quay and at the beginning of 60s the first block of hull- erection shops with complex mechanised lines, a new slip-way with a crane over 1680 ton capacity and a launching arrangement with trolleys of 2000 tons capacity. At that time the Yard started a tanker newbuilding program. The first tanker constructed had 1,500 DWT.

In 1964 the shipyard started to construct 22,000 ton water displacement tankers with fore and aft parts launched separately and then assembled and welded afloat.

In 1968 construction of a graving dock serviced by 6 cranes of 80 ton capacity and 2 cranes of 320 ton capacity each was started. Construction of a second block of hull shops was started. An automatic blasting and priming line was put into operation, as well as an automatic control for steel plasma cutting process, a computer center started to operate.

During the period 19451980 the Yard constructed and delivered about 600 vessels for the navy and merchant fleet. Including a series of tankers of Krym [Crimea] type 150,000 DWT. From 1980 till 1996 Zaliv successfully constructed a series of Panamax tankers of 65,000 DWT with an environmentally safe double hull. A series of stationary oil production platforms was constructed for Vietnam.

In 1988 the first in the world nuclear powered LASH vessel of ice-breaker type Sevmorput able to carry 1300 TEU was delivered. During construction of a nuclear powered LASH vessel and tankers (Panamax type) Zaliv has significantly increased the level of its shipbuilding technology on the basis of modern technological equipment. The hulls constructed and ships repaired at the yard completely comply with international standards and requirements of different Class societies, such as DNV, GL, LR and others.

After 1992 the Yard constructs all vessels for export to Norway, Greece, Holland and other countries. Newbuilding and ship repairing output grows constantly. Zaliv builds up to 34 hulls of dry cargo ships and container carriers up to 8000 dwt and repairs up to 35 vessels of different class. The Yard constructs chemical tankers, and in 2005 an outfitted hull of a 35000 DWT chemical tanker was built. The Yard has developed and implements programs for construction of offshore gas and oil production rigs, container carriers 7200 DWT, chemical tankers 20000 DWT, bulkers 110000150000 DWT.

The docking complex is one of the most important components of the production facilities of Zaliv, as here the main works on large capacity shipbuilding is concentrated as well as execution of ship-repair orders. And the fact that in the graving dock (length of 364 meters, beam 60 meters) the removable intermediate bulkhead is available allows to use as two chambers at once, securing in this case the execution of several independent works.

By 2013 the matter of reconstruction of the graving dock escalated. The repair of the crane equipment and the systems of air supply was conducted on the yard regularly, while the matter of repair of main and intermediate bulkheads of the dock, the repair works had not been performed since the moment of commissioning of the dock. Ultrasonic investigation of thickness of the metal showed that in some areas the wear of construction constituted approximately 60%.

By October 2013 the repair works on intermediate bulkhead had been started: the works on desilting of bulkhead walls, replacement of steel and its painting, the works on repair of pumping equipment of the dock proceeded to conclusion. After completion of these works the yard employees came to the repair of the main bulkhead that was dismantled with the assistance of the divers to the specially manufactured pontoons and transported to the workshops of the yard wherein the repair works took place.

Moreover, the works on repair of hot dip galvanizing zone, grinding and painting of pipes started in the yard. This set of works had been recommended by the German consulting company IMG, serving as one of the actions aimed for increasing of production efficiency.

It worth mentioning that performance of these works was planned for more than year earlier, however, due the large scope of shipbuilding works it was impossible to implement them. The temporary down time in the yard gave the possibility to the supporting departments to perform required repair-renovation works before the work load of Zaliv came back to its maximum.

The graving dock (364 x 60 x 13.2 m) is serviced by two gantry cranes, 320 t capacity each and 5 portal cranes, 80t capacity. The cranes enable to assemble a hull from large sections and blocks weighing up to 600 t. It is possible to divide the graving dock into two spaces by a caisson and repair vessels in parallel with ship construction. To implement large block technology of ship construction within the frames of modernisation a dock-lift vertical transportation system is being constructed in the dock and alongside. Commissioning of this system will enable the shipyard to assemble hulls of blocks of 2,000 t each. Zaliv has two horizontal building berths, 400 m long with following cranes : 80 t x2, 32 t x 3, 16 t x 4. Both slipways have launching arrangements with trolleys, 1,500 t capacity. Vessels weighing from 1,500 to 5,000 t are launched via a floating dock.

On 19 July 2013, JSC Shipyard Zaliv signed the agreement with Norwegian company Bergen Group ASA for purchase of its shipbuilding assets (yards Fosen & BMV). It was presumed that the Ukrainian enterprise would design and produce the hulls of ships and the Norwegian side would equip them. Parties agreed that at final settlement of this transaction, amounting to $ 18,2 mln, Zaliv will become the owner of 51% of shares in the new shipbuilding company wherein above mentioned Norwegian shipbuilding resources will be included.

Operation on procurement of shares is planned to be completed till the end of the year, and afterwards both shareholders will commonly invest into shareholder's equity approximately $8 mln. Moreover, the credit line will be provided amounting approximately $40 mln for construction of outfitted hulls at Zaliv's facilities.

By the words of chairman of Zaliv's supervisory board, Mr. Nikolay Kuzmenko the strategy of development of our two companies coincided. The Norwegian representatives sought for reliable partner in designing and production of maximally outfitted hulls, while Zaliv for the company who will work on their completion and cooperate directly with ship-owners. It is the perfect possibility for Zaliv to expand its attendance on new markets and to receive the firm orders.

It worth reminding that the company Bergen Group ASA (Norway) founded in 2002 is specialized on designing and construction of vessels, on ship-repair and building of oil rigs and offshore steel structures. Cooperation of Zaliv and Bergen commenced back in 2011 starting from signing of the contract for construction of Field Support Vessel.

Crimea and Sevastopol officially joined Russia as President Putin signed a final decree 21 March 2014. Crimeas rejoining Russia was triggered by an uprising in Kiev, which ousted Ukrainian President Viktor Yanokovich from power. The new authorities took some steps, including parliament passing a law revoking the regional status of the Russian language, which caused the predominantly Russian region to defy Kiev.

Zaliv was heavily in debt to banks to the tune of US $50 mn as of the end of 2013. In this situation shareholders capital was worth practically nothing.

On 25 August 2014 unidentified individuals supported by Crimean self-defense enforcers informed the employees of the enterprise that some individual with the surname Zherdev of the Gorky Zelenopolskiy Plant of Tatarstan would be the new director of the plant. It was also stated that the production capacities of Zaliv had been re-registered to a company with the same name registered in Moscow. Employees of the plant were offered to register in the companys office in Moscow.

Minister of Industry and Trade of Russia Denis Manturov stated that his ministry is reviewing the issue of placing orders to Zaliv from Rosneft and Sovkomflot. He assured that the enterprise has a very dry dock of more than 300 meters in length and 70 meters in width. Russia does not have such a dock.

Russian owners of shipyards place their orders mainly with Croatian, Japanese and South Korean wharfs.

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Page last modified: 01-05-2016 20:09:42 ZULU