Constructing a reputation

Smart Holding is one of the largest investment groups in Ukraine with a focus on the key contributing industries to the country’s economy such as metals and mining, oil and gas, shipbuilding, real estate, and agriculture. The Group invests heavily into shipbuilding within the country and as such in 2009 established the Smart Maritime Group (SMG) to operate these assets.

With the two largest Ukrainian shipyards to its name – Chernomorsky (ChSY) and Khersonsky (KhSY) – SMG is in fact one of the biggest shipbuilders in Europe, and the leading shipbuilder in the region. Each yard has its own specialism with ChSY able to produce military and civil ships of up to 120 kt dwt, whilst KhSY constructs both vessel hulls and fully assembled vessels up to 30 kt dwt.

Furthermore in 2011 SMG established a full-scale co-operation with Okean Shipyard that enables it to build larger vessels of up to 250 kt dwt. This shipyard is under joint management and works in full co-operation with Smart Holding through joint marketing efforts. Okean Shipyard was established in 1951, and over the past decades it has built over 400 vessels and other marine constructions (container carriers, combifreighters, tugs, suppliers, tankers, multipurpose vessels and large tonnage vessels). The yard has experience of drilling platforms, self-lifting platforms, floating cranes and other offshore constructions production.

SMG’s current and recent order book shows just how diverse its capabilities are. At present the company is constructing a 65-tonne tug for PKL Latvia, and four Ukrainian ‘corvettes’ for the Ukrainian navy. It also has three river tankers in the works. Having already delivered one supertrawler fish factory to PBTF Russia, SMG is now building a second sister vessel, and is likewise adding a further two push boats to the four previously completed.

Other reference works include five outfitted hulls of container carriers for Damen, two sea tankers, 12 bulk carriers, eight river tankers, and offshore supply vessels. SMG also has experience in outfitting hulls of anchor handling vessels, heavy lift ships, combi-freighters, and non-self-propelled grain carriers.

Looking more closely at the particular assets within the Group, in 2007 ChSY celebrated its 110th anniversary having built over 1000 commercial vessels and naval ships during that time. Its location on the Yuzhny Bug riverside in the city of Nikolayev not only places it in one of the largest industrial and port centres in Ukraine, but also makes it the closest repair base of the Russian Black Sea naval fleet.

As the most experienced naval shipbuilder in the region, in December 2009 ChSY was successful in securing the tender for a series of ten corvette class ships for Ukrainian navy. At a value of $2.5 billion through to 2026 this is the largest defence order ever made by the client.

This well-equipped multipurpose shipbuilding enterprise is even able to construct vessels of different classes simultaneously on two production lines with large tonnage on the main slipway and medium tonnage on the flowline. This scheme organises serial production of vessels in a 400-metre covered berth and is ideal for carrying out dock repairs to ships including the execution of necessary hull, pipe, mechanical, and installation works. Using this technology SMG is able to launch one complete ship per month.

At a little over 60 years old KhSY is somewhat younger than its sister yard but no less well established. Having begun life as a basic yard for merchant shipbuilding in 1951 it is now one of the biggest shipyards in Ukraine. To date it has built over 370 vessels, including 110 for international customers located everywhere from Europe to Russia, and China to the South African Republic. These include dry cargo vessels, research boats, ice-breaking and drilling vessels, container and ore carriers, arctic supply carriers, and tankers of various modifications.

Positioned just 70 kilometres from ChSY, KhSY sits in the mouth of the Dnieper river in close vicinity to the Black Sea. With a 140 hectare site the yard encompasses facilities for metal processing, assembly and welding, pipework, outfitting, painting, and mechanical engineering. The building works are split between two sites the first of which can accommodate construction of vessels of up to 183-metres length and 10,000 tonnes launching weight. Blocks of up to 200 tonnes are formed in the Large Block Assembly Building (LBAB) and then transported onto two construction slipways each equipped with flowline production technology. The second site sees ships of up to 140-metres length and 6000 tonnes launching weight built with hull forming performed on a covered slipway consisting of two lines.

In all of its activities SMG’s first priority remains the high quality of its work. The organic growth of the business is supported by further substantial investments into facilities, and therefore continuous order book expansion. Likewise, the group is constantly looking for market consolidation opportunities for entering new segments as well as potential joint ventures. As such it seems that SMG can only continue to construct an ever stronger reputation in its sector.


Smart Holding
Leading shipbuilder in Ukraine
Region’s three largest shipyards
Focus on quality