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Abu Dhabi Ship Building Company - Case Study Example

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Summary
The city of Abu Dhabi is the principal gateway to the offshore market with the Arabian Gulf a well-established hub. At present the shipping industry is in a growth surge, which is expected to continue as high oil prices drive a thriving regional economy…
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Abu Dhabi Ship Building Company
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Abu Dhabi Ship Building Company

ADSB, however, specializes in the construction, repair and refit of naval and commercial vessels, rather than focusing on pleasure boats. Since the company began in 1995, it has formed strategic partnerships with leading ship designers and builders in ten countries. As a public joint stock company, it was registered in the UAE, established by Amiri Decree N.5 of 1995 on 12 July 1995. Most of the company's contracts have been with its home country's navy, but in 2001, it began to compete in the oil-fired market of other Gulf states (Kahwaji). It was owned 10 percent by Abu Dhabi's government, 40 percent UAE Mubadala Development Company and 50 percent by more than 6,000 UAE national shareholders. In 2002, a 50m expansion was undertaken, and by 2005 more than 800 people were employed by the company. In 2003, ADSB signed the Baynunah contract to design and construct four corvette class 70-metre naval vessels for the UAE Navy. Customers consist of companies involved in shipping, dredging, dry docking, and of course the country's naval forces (Abu Dhabi). The company competes with international shipyards to win major deals with Arab Gulf navies in Bahrain, Kuwait, Oman, Qatar and Saudi Arabia. ASDB was also hired to build a dozen 34-meter Al Saber patrol boats. ADSB has taken advantage of the information technology revolution to upgrade the company to include electronic developments.
Introduction and Background
The United States and Europe are suffering from major business downturns, while the oil-driven economy of the Middle East is benefiting from the demand for ships in the Arabian Gulf. Abu Dhabi Ship Building Company has been able to expand its market as well as to establish a positive brand image with the promotion of Bill Saltzer in 2006 from General Manager to CEO (ADSB). Saltzer has a clear vision of the need in the twenty-first century to communicate personally with management and staff, including construction workers, as they make up a major portion of the employee base. Since then, the company has shown continuous growth (Gulf Shipyards; Reuters; Bahrain; ADSB Starts). Aside from UAE new construction and modification work, ADSB is upgrading Bahraini, Qatari, and Yemeni ships while seeking contracts from Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia (Kahwaji). The opening of another hi-tech facility for building advanced composite vessels was the cover story for the company newsletter initiated in 2006 to celebrate the company's 10th year. This expansion will enable it to compete strongly in the rapidly expanding composite military and commercial market throughout the region (Abu Dhabi). ADSB has a low-key but attractive Web site that is introduced by a short video with a small amount of text ... Read More
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