Local shipbuilder thrives, eyes expansion in gulf region.

• Author: Tiron, Roxana

Abu Dhabi, United Arab Emirates--As this Middle Eastern nation boosts the power of its sea service, business is booming for an indigenous company that not only is grabbing a large share of navy contracts, but also is planning to spread out in the region.

Abu Dhabi Shipbuilding is the product of an offset deal between the UAE and Newport News Shipbuilding, based in Virginia (now Northrop Grumman Newport News), which in 1994 was awarded a contract to refit the navy's patrol boats. Even though the contract did not work out, in 1996 ADSB was set up as a joint-stock company.

Now, at a time when U.S. and Western European shipbuilding contracts are drying up, ADSB is busy building corvettes, supply ships and patrol vessels, as well as expanding its facilities and partnerships.

The company shot to fame when it won a contract for the navy's "Baynunah" program at the end of 2003. The contract, worth at least $500 million, is reportedly the largest local defense contract ever awarded in the Gulf region. Under the contract, ADSB will deliver four 70-meter corvettes, with an option for two more, said William Stewart, vice president for marketing.

The water-jet-driven warships will have multi-mission capabilities, including coastal patrol and surveillance, mine detection and defense from air and surface attacks. Baynunah will be the largest steel-hulled naval vessel ever built using water jets as its main propulsion, the company claims. The Baynunah-class corvettes, which have an aluminum superstructure, are powered by four diesel engines, which in turn drive three water-jets.

Rolls Royce will supply the warship with its Kamewa water jets. The ship can go as fast as 30 knots and has a range of 2,400 nautical miles at a cruising speed of 15 knots, according to company documents. The corvette carries water, supplies and fuel, and has an endurance of about 14 days.

"It will be the only ship of that size to have a dedicated fixed hangar for helicopters," Stewart told National Defense. The ship's hangar is specifically designed for the Navy's AS 565 Panther helicopters that are built by Eurocopter.

Constructions Mecaniques de Normandie (CMN) in Cherbourg, France, is a partner on this project. The first ship completed final design and review at CMN's facilities. The first ship will be built in Cherbourg and is scheduled for delivery in 2008. The remaining three will be built in Abu Dhabi, said Stewart.

The Baynunah-class corvettes are a derivative of CMN's...