The Cable Directory interviews Mr Robert Springs, President of Draka’s Division for Marine, Oil and Gas International.
1. Do you continue to see the price of Copper escalating in the future? This as we know has a gigantic impact on the price of cable?
Demand for copper has risen recently due to its use as a component in a variety of applications. Emerging economies are requiring vast amounts of copper for the production of automobiles, radiators and other products, indicating that copper will remain a higher priced commodity for the near future. Because copper is a main component in cable, its market value definitely has an impact on end-product pricing. To help protect against escalating project costs, once a customer accepts our bid and issues a purchase order, we lock in the wire and cable costs using a derivative contract, which is a risk management tool used by leading corporations. We also ensure our customers get the most for their money with our conveniently located distribution centers and manufacturing facilities that allow us to operate more economically and avoid needless cost.
2. What are Draka's key market shares and how do you see Draka developing into new markets in the future?
Draka is the only leading wire and cable provider solely dedicated to the marine and offshore industries. With our global capabilities and local resources we are able to ensure the wire and cable portion of our customers’ projects come in on time, on budget, on spec and in supply. In addition, we are committed to having a presence nearby any region where offshore drilling is taking place.
3. The oil and gas market demand is nearing its peak how do you see Draka changing to accommodate other energy sources such as Nuclear Energy and Wind farms?
Actually oil exploration offshore is booming right now so our industry is currently growing. Shipyards are full of new orders for rigs well out into 2009 and even 2010 in some cases. So Draka Marine, Oil & Gas International continues to focus solely on the offshore oil and marine business.
4. What Environmental policies do Draka currently have?
An important aspect of Draka’s policy is the commitment to minimizing the environmental impact of its activities. This is achieved on the one hand through continuous improvement of Draka’s products and processes, and on the other by creating better conditions with regard to the installation, use and end-of-life disposal of our products. This can only be achieved with the full dedication of our employees and close collaboration between all stakeholders.
The starting point for Draka’s environmental policy is of course, that all business activities must, as a minimum, comply with current legislation and regulations. The production facilities each have their own improvement program tailored to their own particular situation. The involvement of employees is encouraged through training programs, so that every employee can make an optimum contribution to these improvements.
Draka encourages the implementation of a structured environmental management system for all operating companies. Most European locations have been accredited for many years under the international ISO 14001 standard.
Key environmental improvements have been made in recent years in the use of plastic materials. For example, the use of halogen-free materials is steadily rising, for use in both buildings and cars. In addition, a shift is taking place with regard to PVC towards less toxic plasticizing agents and additives; in Draka’s European companies, for example, the transition to lead-free PVC stabilizers is virtually complete. The reduction in the use of heavy metals such as lead is an important environmental theme, and in anticipation of European regulations (which come into force in 2006), Draka has already introduced more environmentally friendly alternatives.
With countries seeking to find new energy resources such as West Africa and Indonesia, do you see Draka expanding in or further into these areas?
Draka is committed to having a global presence to support offshore drilling by providing prompt response to our customers’ maintenance and repair needs. Our 11 global manufacturing facilities and distribution centers located in Aberdeen, Singapore and Houston enable us to help support new builds and maintenance of the fleet, serving global markets including West Africa.
Is Draka finding it harder to compete with emerging cable manufacturers from China, the Middle East, Turkey and India? Bearing in mind their production costs can be greatly reduced by lower labour costs.
The key to serving the global offshore market is to be in a position to quickly serve global customers. With our broad manufacturing base and global distribution system, we are strongly positioned to serve the global offshore fleet that is very mobile in the global market. Though at times some local producers may be able to produce some wire and cables more inexpensively, it is rare that they can deliver in fewer than 12 to 14 weeks, while frequently Draka has the wire and cable in stock and ready for on-time delivery from our distribution system.
How do you see Draka's and the global demand for cable changing over the next 10 years?
As oil continues to drive the economy, companies are investing in drilling exploration, especially new offshore rig construction. A huge part of the construction for each offshore rig, comes the need for reliable wire and cable solutions to keep the systems operating properly and the oil flowing. As companies continue to turn to offshore drilling, we see the global need for unique reliable, on-time wire and cable solutions involved in the maintenance, repair and overhauling of existing rigs as well as new rig constructions increasing.
Do you believe that the new potential powerful economies China and India will require a Draka presence?
Now that drilling and exploration are taking place in the South China Sea and Indian Ocean, there is a need in these regions for reliable wire and cable solutions, on-time delivery and support. Draka has had a presence in these markets for many years with production facilities in both China and India.
Are there any other recent developments by Draka that our readers should be interested in?
Draka recently introduced Draka Flex-Flame HCF (Hydrocarbon Fire) cables that are designed to keep critical system applications operating during a fire and other potentially dangerous situations that can potentially arise in the harsh offshore environment. The design is based on the fire resistant elastomeric Flex-Flame (BFOU) cable, that is covered with Draka Marine, Oil & Gas International’s unique composite protection, giving the Flex-Flame HCF cables the capability to withstand high heat temperatures ranging from 750°C to 1100°C. When exposed to a hydrocarbon fire, a typical IEC 6033121 designed cable will break down after two to six minutes. In comparison, the Flex-Flame HCF cables can endure extreme temperatures up to 1100°C for up to 60 minutes, making them one of the most fire resistant in the industry.
Draka Flex-Flame HCF cables received the 2006 Offshore Technology Conference Spotlight on New Technology Award.
Our thanks to Mr Springs for taking time out of his busy schedule to answer our questions.
