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Aviation: Reductions announced by SAS
As part of the already planned cost reductions in the new strategic platform 4Excellence, the Nordic airline SAS will reduce
the number of full-time positions in the administration with 300.
One of the main targets in 4Excellence is a 3-5% unit cost reduction annually. That equals approximately 2 billion SEK for 2012.
SAS maintains its forecast of a marginally positive financial result for 2011. However as previously announced the implementation
of the initiatives in 4Excellence becomes even more crucial in 2012 due to increased economic uncertainty, increased pressure
on yields in the airline industry and continued high fuel prices.
Source: The Norway Post, 19.1.2012
Giske faces disciplinary action
A united opposition in Parliament rejected Trade Minister Trond Giske’s explanation of how and why he behaved as he did when
he actively tried to halt the sale of Norway’s largest commercial television station TV2 to a Danish company. Giske made few
if any apologies, and that sparked calls to send the case on to the Parliament’s committee that could cite Giske for not doing
his job.
Giske contends he was just doing his job, when he tried to stop media company A-pressen’s 50 percent stake in TV2 to Egmont of Denmark, which also held 50 percent. A-pressen in turn is owned by trade union confederation LO and telecoms firm Telenor, in which the state maintains a major stake. It was through this stake that Giske tried to exert his influence as major shareholder.
And he did, to a degree that stunned officials at both LO and Telenor. Giske fired off text messages, held impromptu meetings at the annual meeting of employers’ organization NHO and even kept pushing his cause at a late-night session at the Oslo bar and restaurant Lorry’s. Political intrigue ran high, and the leaders of both LO and Telenor felt they were being put under extraordinary, unwarranted pressure.
They were also puzzled, because Prime Minister Jens Stoltenberg kept saying that the government “had no opinion” on the sale of TV2 and no plans to interfere. Giske then got in trouble for going behind Stoltenberg’s back and seeming to carry on his campaign with no formal mandate from the government.
Has his supporters
Giske has claimed all along that he does have support, from within his own Labour Party, from government coalition colleagues
Kristin Halvorsen of the Socialist Left (SV) and Liv Signe Navarsete of the Center Party and from county leaders from Labour.
The tall trade minister literally kept standing tall, calmly and cooly fending off the criticism he was showered with.
Late last Friday and through the weekend, though, things got worse, after a clearly fed-up Telenor chairman Harald Norvik, himself a Labour Party veteran, held a highly unusual press conference to complain about Giske’s heavy lobbying and claim that he was put under pressure “that was entirely incorrect for a government minister to exert.” Included within the pressure were “rumors” that Giske would replace him as Telenor chairman if the TV2 sale went through.
Norvik and many others also believe that Giske violated the terms of his own government policies on state ownership, which hinder meddling in specific business decisions. The state is generally a passive owner, expected to let company boards and management assess what’s best, and other investors don’t appreciate state interference. One local business professor claimed that Giske was using “1970s methods” that simply don’t work anymore.
Power struggle
Stoltenberg tried to rein in Giske, without much success, but his irritation with Giske was visible. It wasn’t likely Stoltenberg
would fire him though, because that would set off a power struggle within the Labour Party, where Giske has his supporters.
Other opposition politicians went so far as to say Giske had lied in his messages to Norvik, implying that the government did in fact have an opinion. Giske would only concede that perhaps one of his text messages was “imprecise,” and the conflict between Giske and Norvik escalated.
No reconciliation is in sight, and it poses a problem if the country’s trade minister and the chairman of one of the county’s biggest companies are in conflict. Meanwhile, Giske was called in to Parliament on Thursday and opposition politicians wanted to see a humble and apologetic trade minister. They didn’t.
Defended himself
Instead Giske kept defending his attempts to keep ownership of TV2 local. He apologized for a few aspects of how he carried
out his attempts, but he claimed he had not exerted “unwarranted pressure against Telenor’s chairman” and can only acknowledge
that Norvik thinks he did.
Giske also claimed it was “normal” for the ministry to have meetings with the companies in which the state invests, and that the companies inform the state, via the ministry, about important issues. He cited cases where the state can exert active, not passive, ownership. He thought the sale of TV2 was a legitimate issue to take up, and oppose.
Opposition parties disagreed and want the case to be heard and evaluated in the parliament’s Standing Committee on Scrutiny
and Constitutional Affairs. That’s where committee members evaluate whether rules were followed, and even though the government
parties’ majority in Parliament blocked a formal referral to the committee, Norwegian Broadcasting (NRK) reported that the
committee is likely to take up the issue on its own. At stake is the role of the state in its ownership of major companies,
and whether Giske’s behaviour will scare other investors away.
Source: Views and News from Norway/Nina Berglund, 19.1.2012
Record export of Norwegian salmon
Norway has never exported more salmon than in 2011. Altogether 840,000 tons were sold on the world markets last year, and
the demand is growing, NRK reports.
Countries like Brazil, China, India, Malaysia, Singapore and Thailand are growing markets for the Norwegian salmon industry.
It is expected that the export of Norwegian salmon will increase also this year, according to analyst Lars Liabø.
Source: The Norway Post, 18.1.2012
EU agreements unlikely to waver
NEWS ANALYSIS: There’s been a lot of debate in Norway lately over the country’s trade and cooperation agreements with the
European Union (EU), and a political strike was planned Wednesday over yet another EU directive. The debate is tied to a new
study of how especially the so-called EØS-avtale (EEA Agreement) has affected Norway’s economy, politics and welfare since
it was agreed 20 years ago, but despite some demands for alternatives, it’s unlikely to be replaced.
Norway simply profits too much from the EØS pact now in place, according to a long list of economic benefits outlined in the study by a government-appointed commission (Europautredning). The only alternative that could result in even more economic benefits for Norway is full membership in the EU, and that’s even more unlikely: Norwegians have twice voted against joining the EU, and recent public opinion polls have indicated record-high opposition tied to the current euro and debt crises among EU member states. The three parties making up Norway’s Labour-led government coalition also disagree on EU membership (Labour for, the Center Party and Socialist Left against), and won’t bring up the issue.
Norway now is, in reality, both inside and outside the EU at the same time, according to Professor Fredrik Sejersted of the University of Oslo. He led the commission and its study, and agrees with a Norwegian Foreign Ministry assessment that “Norway is as integrated in European policy and economy as any non-member state can be.” The commission’s own accounting found that Norway has embraced 75 percent of the EU’s regulations over the years. More than 6,000 EU laws have been included in Norwegian law, Norway has only sought 55 exemptions and its veto right has been discussed just 17 times, reported newspaper Dagsavisen. Several unions planned to strike on Wednesday to protest another EU directive regarding temporary employment agencies. Even though some feel the new rules will improve conditions for workers employed through agencies, opponents want the Norwegian government to veto them, to promote more full-time instead of part-time employment.
The imposition of EU rules in Norway has led to calls from the country’s more protectionist-oriented parties like the Center Party (Sp) and the Socialist Left (SV), and a long list of anti-EU organizations, that the pressure Norwegian politicians feel to appease the EU has damaged Norway’s own democracy. Center Party leader Liv Signe Navarsete, in comments that irritate her Labour colleagues in government, claims the commission’s numbers show that “the Norwegian people have been fooled” because the EØS-avtale that governs Norway’s economic cooperation with the EU has in practice been “more comprehensive that anyone could have dreamed” when it took effect in 1994. She continues to argue that far too many of Norway’s laws are, in practice, hammered out in Brussels.
The farmers her party represents, though, have been among those benefiting greatly from the agreements between Norway and the EU. They provide access to EU markets, allow the labour migration that not least Norway’s agricultural sector has benefited from, and have streamlined cross-border trade and investment.
The study notes that Norway’s economy has grown by 60 percent since the EØS agreement took effect, and employment by 25 percent. Unemployment rates have been cut in half and purchasing power has risen strongly. Norway’s oil, gas and seafood are among factors pumping up the economy, and Europe is Norway’s biggest trading partner. “The EØS (the Norwegian abbreviation for European economic cooperation) has been extremely favourable for Norway,” noted Sejerstad when he handed over the commission’s study to Foreign Minister Jonas Gahr Støre on Tuesday.
Støre has been a staunch supporter of the EØS, as is his Labour Party. The decision to evaluate it was made at least in part to placate Labour’s government coalition partners Sp and SV. Støre was quick to claim that the study shows how the EØS agreement has provided far more advantages than disadvantages for Norway. The commission, for example, also noted that the EU has steadily beefed up its environmental and climate regulations and improved its social welfare policies, some of which have even firmed up the rights of Norwegian workers.
Most important, Norway has been been allowed to maintain its policies that aim to protect Norwegian agriculture, favour outlying districts and restrict alcohol consumption.
Støre wouldn’t promise he’d read the entire, thick report on Norway’s EU agreements that he was handed this week. His ministry claimed, though, that it “will provide an important frame of reference” for work on the government’s own evaluation of the EØS, which Store calls “the most comprehensive international agreement that Norway has ever entered into.”
Støre and a majority in Parliament believe Norway has been well-served by the EØS as an alternative to full EU membership.
Prime Minister Jens Stoltenberg has already said his government won’t launch any studies of alternatives. Demands from Navarsete
and anti-EU forces to study alternatives, and possibly replace the EØS with separate bilateral agreements on individual issues,
thus seem unlikely to be met.
Source: Views and News from Norway/Nina Berglund, 18.1.2012
Hydro curtails production in Kurri Kurri, Australia
Norsk Hydro ASA has decided to curtail one of three production lines at its Kurri Kurri aluminium plant in Australia. The
decision follows a consultation process with the local employees.
"Kurri Kurri is in a tough spot, and we need to take swift actions to reduce losses. Operation under current conditions is not sustainable. Curtailing one line gives some relief to the situation, but we need to consider whether this is enough," says Hilde Merete Aasheim, executive vice president of Hydro's Primary Metal business area.
Reducing production in Kurri Kurri will be done by curtailing potline 1, commissioned in 1969, representing an annual production of 60,000 metric tons. 150 jobs will consequently become redundant. The cost of curtailing potline 1 is estimated at approximately USD 20 million.
The process to curtail potline 1 will start shortly, and the production line is expected to be fully curtailed in 6-8 weeks.
The decision is a response to the weak macro-economic environment, with low metal prices and uncertain market outlook. In addition, Kurri Kurri is suffering from a strong Australian dollar relative to the US dollar.
Hydro remains confident that customer commitments will be served through its global metal products supply system.
Kurri Kurri, fully owned by Hydro, has three production lines with a total annual production capacity of 180,000 metric tons.
The plant, located near Newcastle in New South Wales, employs around 500.
Source: Nortrade, 18.1.2012
New name for big find
One of last year’s largest oil finds, Aldous/Avaldsnes, was today named the Johan Sverdrup field. Minister of Petroleum and
Energy Ola Borten Moe announced the new name during a business and industry conference in Sandefjord.
- The Norwegian petroleum adventure is the property of all Norwegians. That is why it is important that the names of large, independent developments have a signal effect beyond the continental shelf. The choice of name reflects the importance of the project and the operations now being conducted. Johan Sverdrup was the leader of the political movement which promoted the introduction of the parliamentary system in Norway, and remains an important symbol of the growth of a democratic Norway. I hope that this find will contribute in a significant manner to the development of the Norwegian democracy and our society in the future, says Minister of Petroleum and Energy Ole Borten Moe.
In its white paper on Norway’s petroleum policy, the Ministry of Petroleum and Energy announced a change of practice in the naming of petroleum finds on the Norwegian continental shelf. One of the measures taken was to appoint an advisory committee on names, which currently consists of Karsten Alnæs, Kristin Clemet, Per Egil Hegge and Marit Hauan.
Johan Sverdrup’s work resulted in the development of a broad-based national movement that promoted independence from Norway’s union partner, Sweden. Sverdrup’s government expanded the vote, strengthened the rights of women and introduced a series of liberal reforms.
His most important proposal was to permit members of the government to attend the Storting (the Norwegian Parliament), to participate in open debates. In doing so, he set course for a system under which the government is independent of the majority grouping in the Storting, and is held accountable for its decisions.
Milestones along the way to this goal were the introduction of annual parliaments, expanding the vote for men, and strengthening
the national desire for independence from Sweden. Johan Sverdrup’s work under the slogan “All power in this house” contributed
to the fall of the civil servant state and made him a symbol of the development of democracy in Norway.
Source: Ministry of Petroleum and Energy, 17.1.2012
Cold relations with China ‘damaging’
The ongoing diplomatic freeze between Norway and China is damaging to both parties, which would do well to put the conflict
behind them, according to a major Chinese investment expert. Meanwhile, China’s ambassador to Norway continues to blame Thorbjørn
Jagland, head of the Norwegian Nobel Committee.
It was the awarding of the Nobel Peace Prize to jailed Chinese dissident Liu Xiaobo that set off the diplomatic conflict that’s resulted in a lack of high-level political contact between China and Norway for more than a year. Norway is allegedly losing the potential for Chinese investment, said Victor Zhikai Gao at a conference in Oslo last week, while China is losing access to Norwegian technology and, in the long run, access to new trade routes through the Arctic.
Victor Zhikai Gao leads the Beijing Private Equity Association and China Private Equity Association and is playing a major role in reforming China’s finance industry. Even though trade between Norway and China actually rose last year, he thinks fallout from the Nobel conflict is delaying or spoiling Chinese investment in Norwegian companies.
Neither side seems inclined to take new steps towards reconciliation. Tang Guogiang, China’s ambassador to Norway, once again
criticized Jagland in a lengthy column in newspaper Aftenposten on Monday, and claimed that 87 percent of the Chinese population
is satisfied with developments in Chinese, and that China has human rights and freedom of expression, albeit in accordance
with Chinese law. He denied a claim by Jagland that a “new wall” exists between China’s communist party and its people, and
asked for respect for China’s chosen path.
Source: Views and News staff, 16.1.2012
Smoking may be banned during work hours
Minster of Health, Anne-Grethe Strøm-Erichsen wants to ban ten-packs of cigarettes, and also considers it likely that employers
will ban smoking for their employees during work hours.
The health minister warns about tighter rules and regulations regarding smoking, and says that only allowing the sale of 20-packs of cigarettes was one of the suggestions presented at a hearing in parliament on Friday.
Strøm-Erichsen told NRK that this is something that is being practiced in several other countries, and will help show teens how much smoking actually costs.
The government also wants to legislate a law that prohibits students from smoking during school hours, and make all entrances of public buildings smoke free. They also want to ban indoor smoking rooms in the work place.
Long term, the goal is to implement a society completely free of tobacco products.
Secretary General of the Norwegian Heart and Lung Patient Organization, Frode Jahren, wishes that the suggested legislations were even stricter. "They could have set the minimum age for buying cigarettes to 20 years. They could also have suggested a ban against smoking during work hours," he told NRK.
Strøm-Erichsen doesn’t discount Jahren’s suggestions. She thinks that no smoking during work hours is realistic for several professions. "We take the Tobacco Act step by step," she says.
Authorities will also introduce a licensing system that only allows approved retail locations will be allowed to sell tobacco. These locations will have to pay a fee that will go towards financing controls to prevent the sale of tobacco to minors.
Although the number of youth that smoke regularly is declining, there are still 150,000 people aged 15-24 who smoke daily
or once in a while.
Source: The Norway Post, 16.1.2012
Norway no longer urges companies to refrain from trading with Myanmar
The Government has decided that it will no longer urge Norwegian companies to refrain from trade and investment in Myanmar.
This was an exclusively Norwegian policy. The decision has been made in response to the progress being made in Myanmar. Norway
continues to align itself with the EU sanction regime, which will be considered more closely in the course of the spring.
“Many political prisoners have now been released and important steps have been taken towards reconciliation and democracy. The change in Norwegian policy is a signal to the Government of Myanmar that reform pays,” said Foreign Minister Jonas Gahr Støre.
“The country needs trade and investment in order to create jobs, promote development and reduce poverty. Better standards of living will also help to propel further democratisation. Norway will therefore no longer urge Norwegians not to trade with or invest in Myanmar,” said Mr Støre.
Foreign Minister Støre will visit Myanmar in the near future, and this will provide an opportunity to discuss the way forward.
Source: Ministry of Foreign Affairs, 14.1.2012
Tamrotor Marine Compressors displays new compressor at the Asia Pacific Maritime 2012 exhibition
Tamrotor Marine Compressors (TMC), the leading supplier of compressed air systems for marine and offshore use, exhibits at
Asia Pacific Maritime (APM) 14th-16th March in Singapore. TMC will focus on the brand new compressor series TMC 7-27, the
cost and energy saving TMC Smart Air® technology, and time and cost saving spare part kits.
TMC – the only dedicated marine screw compressor supplier
TMC is the only provider of marine screw compressors who is solely dedicated to providing compressed air for marine and offshore
use. Since the start in 1989, TMC’s only focus has been the design and construction of compressed air equipment that satisfy
the extreme marine requirements.
Over the last 3 years, TMC have signed more than 1600 orders for complete compressed air systems ranging from 50 to 10,000 m3/h.
New compressor series: TMC 7-27
With a sleek design, the market’s best footprint and capacity, new solutions for service accessibility and the TMC Smart Air®
energy-saving technology this is the most innovative new compressor in the market.
The new TMC 7-27 series has a new, visionary design. With its smooth shape and tilted control panel, this compressor is space-saving and operator-friendly.
With a footprint of just 0.7 m2, the TMC 7-27 is the smallest in its range in the market. TMC 7-27 gives as much compressed air as models that have a significantly larger footprint.
TMC 7-27 is designed for 55°C ambient temperature. A unique, patented temperature control system ensures safe operation in the variable conditions in the machine room and with variable load of the compressor.
With a lifting lug and its small footprint, TMC 7-27 is easy to install.
Fewer components give fewer service points, and simple access to all service points has been a priority in the design process.
TMC 7-27 uses the cost-saving TMC Smart Air® technology
The unique TMC Smart Air® technology means at least 40-50% reduction in the energy consumption compared to a conventional
compressor. With the best regulation range in the market for a compressor this size the TMC 7-27 is extremely efficient, energy-saving
and cost-effective.
Spare Part Kits for cost-saving and ease of maintenance
To make ordering and use of spare parts more efficient and cost-effective, TMC have introduced spare part kits. The spare
part kits contain all parts that should be replaced during a given service operation. A service CD containing live video instructions
helps the personnel onboard safely perform the routine maintenance operations.
Benefits of using the kits include: lower price per part than when purchased item by item, time saved on ordering and checking, and certainty of getting all necessary parts – and no unnecessary parts. This means there will be no unscheduled stops due to missing parts. Packaging with distinct TMC profile ensures that the parts received can be recognized as high-quality, original TMC spare parts.
TMC spare part kits include kits such as 1500 hours/1 year kit, oil change kit, separator kit, etc. Kits are available for
all TMC compressor models.
Source: Nortrade, 13.1.2012
