HomeMy WebLinkAboutExhibit 7MetalCraft Marine
INCORPOR A TED
CORPORATE PROFILE
2006
1 — Company History
MetalCraft Marine Incorporated was formed in 1987 with Tom Wroe as General Manager and Master
Boatbuilder and Montgomery Smith as President and Senior Partner. Both were formerly with Kingston
Aluminum Yachts from 1978 to 1987. The Company's site on Anglin Bay has been a shipyard since
1.678 and MCM is proud to continue that 300 year old tradition.
Kingston Aluminum Yachts, as the name implies, had concentrated on the .private. yacht. market,
biilding primarilysailing yachts. With the new ownership in place the company shifted gears into the
commercial power market. The first commercial craft produced by MetalCraft was a 24' workboat
called the Kingston 24', with high quality construction standards and an innovative hull shape (the
"PowerLit Hull") which promoted early planing and provided a stable platform at high and low speeds.
With a solid background in yacht construction, MetalCraft was readily accepted in the commercial
markets, earning recognition as well from key government procurement agencies. The company's
greatest area of success has been with high speed Patrol, Fire & Rescue craft. Early on the company
foresaw the growth in the jet boat market and is now a leader in jet boat design and production. This
proved to be a very successful plan for the company, which has shown constant growth, even through
the 1990's recession. MetaICrat has now built or refit more than 460 aluminum commercial boats.
More than 100 of these were for the Canadian Federal Government, and most of these were MetalCraft
proprietary designs.
This solid base of business has allowed MetalCraft to undertake more export marketing. The company
has been a regular supplier to the US Federal Government since 1994 and has had regular exports to
Central and South America as well as intermittent dealings on the. African Continent. The process of
business expansion has also led the company to meet increasingly stringent quality standards, with
construction meeting Canadian and US Coast Guard standards (CFR 46) and welders certified to The
American Bureau of Shipping (ABS). In addition, the company builds to American Boat and Yacht
Council Standards.
To provide an increasingly broad range of services, the company has formed strategic alliances with
other marine manufacturers and equipment suppliers. As well, MetalCraft Marine Group has developed
marketing agreements with Connor Industries of Parry Sound (Stanley Custom Boats) and formal joint
ventures with Willard Marine Inc.of Anaheim California. These agreements permit MCM to take on
larger projects, bringing in new products and expertise.
The company has achieved many technological breakthroughs, considering its small size, including new
construction techniques and new developments in process and boat design. The Company has twice won
Great Boat of the Year Honors for its designs at the New Orleans International Workboat Show and the
Greater Kingston Technology Council Award for Best Commercialization of New Technology. These
breakthroughs have been instrumental to MCM's success in establishing itself as an industry leader in
North America.
MetalCraft Marine Inc. is very proud to be a supplier to America's Homeland Security Plan and US
Navy's Force Protection Program.
2 — Products & Services
2.1- Custom boatbuilding (build to print) in aluminum from 20 100 feet
2.2 - Builders of stock design patrol & workboats in welded aluminum from 20' to 65', with
conventional or jet drive propulsion; used in Fire/Rescue, survey, environmental control, patrol, dive,
fishing, tour, construction and tender applications.
2.3 - Builders of the production line 20' to 30' KingFisher Skiffs.
2.4 - Builders of custom or production line 4 meter to 11 meter Rigid inflatable Boats (R.I.B's).
2.5 - Computer aided design and drafting, using AutoCAD, AutoShip, & Rhino.
2.6 - Refits and repairs on small and large vessels requiring regular or dry - docking using 210' X 40'
dry-dock.
2.7 - Fabricators of steel, aluminum and stainless steel parts for material or other industrial applications.
2.8 - Marine mechanical engineering, in mechanical, electrical and hydraulic fields.
2.9 - Marine engine sales - dealers for Volvo Penta, gas & diesel, Mercruiser, Caterpillar diesels &
gensets, Cummins diesels & gensets, Yanmar diesels & genets.
3 - General Information
3.1 - Core Labor Force
35 Production
4 Design, Research & Development
11 Management & Administrative
Up to 10 additional seasonally
3.2 - Job Categories: Master Boatbuilder, Journeyman Boatbuilder, Marine Engineer, Marine Mechanic,
Certified ABYC Electrician, Apprentice Boat Fitter, CWB Welding Supervisor, ABS Certified Welder,
Apprentice Welder, Master Minor Waters Captains.
3.3 - Largest Contracts: Government - $13,600,000; Commercial - $770,000
3.4 -- Find additional detail with our enclosures; MCM References & Projects Listings
MCM Warranty Statement
4 -- Company Standards
4.1— MetalCraft Marine weld design and engineering to CSA W59.2.
4.2 — All building is to American Boating & Yachting Council & USCG CFR 46 standards.
4.3 — MCM's electrical standards to AB YC & CCG TP127.
4.4 — All welding ' by Bureau of Shipping ABS certified welders
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4.5 — MetalCraft has an in house Q/A-Q/C program. MCM has worked with ISO 9000 quality assurance
and found it inapplicable and extremely costly for marine construction and repair.
4.6 — MetalCraft has set an industry standard with its 10-year hull warranty on all boats built, including
for commercial and military purposes. For 10 years MetalCraft will repair defective hull welds as per
our Warranty Statement. The company has adopted the Canadian governments standard warranty policy
found in their Standard Acquisitions Clauses DSS 1026A-1991, see Commercial Warranty Statement.
4.7 — MC.M maintains a solid integrated in house training program
5 -- Company Achievements
5.1 —Joint Venture Programs — Since the start of business, MetalCraft has regularly engaged in
strategic alliances to acquire the knowledge or expertise required to get the. job done. Our current J-V,
programs with Connor Industries of Parry Sound ON and Willard Marine of Anaheim CA, focuses on
the best attributes of the two partners. MCM represents Connor Industries' Stanley Custom Boats
commercial line in export markets.
5.2 — Jet Boat Technology — MetalCraft Marine has been a leader in the jet boat field, developing their
first jet boat hull in 1983 as Kingston Aluminum Yachts. The Kingston Series, the first MCM design
which originated in 1987, was also designed to be jet propelled (see Kingston Design statement). While
working on a modification for the existing Saute Moutons design for the high speed jet boats operating
in the Niagara Gorge, MCM developed hulls that would operate with clean water flow with only 6
degrees of deadrise. This provided added buoyancy and additional capacity in aerated hydraulic wave
conditions. Resultant designs from this development are the St. Lawrence ULC and Moutons Cadet.
5.3 — Foam Sponson Design — MetalCraft pioneered and developed its own foam collar design for
RIBs. The MCM design has been in commercial service since 1987. It is designed as either solid foam
or air foam combinations. MCM was also the designer of the Ambar Foam Sponson. Though MCM did
not patent this technology, it is protected by copyright 1997.
5.4 — Skiff Frame Technology — MetalCraft has developed a box -section girder type frame system for
its 20'-30' Kingfisher skiffs. This construction method eliminates much of the conventional framing
and results in a stronger, lighter hull. More importantly, it simplifies the manufacture of small boats and
reduces the cost of production.
5.5 - ,Rotational Tooling - MetalCraft has been working for some time on the development of
fully rotational moulded jigs. The first successful prototype was built and put into operation in early
1996 for a 4.2in RIB. This technology permits maximum use of down -hand welding while also
improving the speed and comfort of the individual welders.
5.6 -- Aluminum/F'Glass Hybrid RIB - In conjunction with Willard Marine Inc. MetalCraft built the
first ever USN/USCG standard 7M RIB with an aluminum hull with mating F'Glass deck. mould. The
craft was considerably lighter and yet stronger than the F'Glass hulled model yet provided enormous
-economies 'of scale i terms:.of full rate production capabilities, fuel economies and reduced life cycle
costs.
6 - Standard Production Designs
6..1 - Kingston Series -- The Kingston was the first MCM design fully designed by Tom Wroe. The
design has undergone constant refinement through the years. A unique feature of the design is its ability
to convert to several beam to length ratios as well as deadrise angles from 12 to 24 degrees. It was
originally designed to handle jet installations as well as conventional propulsion systems. The design
was recently selected by both the USCG and the USN for multi -year contracts against venerable
competition. The Kingston has been built from 20' to 54' and comes with impressive references.
6.2 - Kingston RIB - The Kingston series was first adapted into a RIB design because of its range of
convertibility. Regularly custom requirements would emerge from customer groups that required a rigid
inflatable boat that did not fit anyone's mould. These custom boats often would not fit the budget of the
prospective user. Whereas our Manta series did not have the data available to support rapid design
changes to accomplish different tasks the Kingston certainly did. This provides for a standard platform
that is easily customized to meet the greatest range of customer operational requirements. Both the
Kingston and Kingston RIB are fully designed craft with full hydrostatics, Integrated Logistics and
Combatant packages available.
6.3 - Kingfisher Series - The Kingsfisher was originally designed as a replacement alternative for the
Inuit Umiak (freighter canoe). It was designed specifically for the harsh Arctic environment which
features inhospitable landing sites, varied ice conditions, but most notably, an absence of service and
product support. Its key design objectives were high loading capacity, robust construction, low
horsepower requirements, ease of construction for technology transfer, and high full -rate production
numbers, The Kingfisher's success has resulted in a number of Patrol versions and it is being considered
and refined for military service. The Kingfisher is available in sizes from 20' to 30'.
6,4 - BuIlnose Series - The Bullnose is what we call the pickup truck of boats. It is a deep `V' landing
craft or fixed bow, high speed barge. It has handling characteristics ofa conventional boat but with all
the advantages a barge can provide as a real work platform. It has surprising load capacities for such a
steep deadrise and can get up on plane very easily due to its very wide outboard planing flats. This
model is offered from 1 K' to 34'.
6.5— St. Lawrence Utility Landing Craft — The St. Lawrence ULC is a high speed, high load landing
craft barge. it is well suited as a personnel carrier with a larger cabin added as it can carry the work
crew's tools, apparatus, materials etc. its hull is easily driven reducing the horsepower requirements and
fuel requirements while also providing higher reserve buoyancy to allow for larger payloads. To handle
higher wave conditions we have used the boat's weight and compound bow shapes to knock down the
waves as opposed to a higher deadrise.
6.6 — Polar Barge --- The Polar Barge is a deck barge with symmetrical catamaran hulls. In this design
we looked for cost savings from both the construction design as well as horsepower savings that would
give us a large competitive edge over other similar craft on the market. "We '"also looked for additional
benefits from a planing hull that could handle high loading. One large benefit we designed into the craft
was the ability to assemble and disassemble the craft for portability in the field. This of course is a major
benefit for operations which are not fixed area.
7.0 — Future Direction
Having established itself as a key player in the aluminum boat manufacturing industry in North
America, MetalCraft Marine is poised to take on larger challenges. MetalCraft has already obtained
significant U.S Government contracts, and will continue to build on this reputation in our newest
market, the defense industry. At the same time, we will use strategic alliances with both Canadian and
U.S. companies to build other markets, and explore new opportunities.
MetalCraft owes much of its success due to new product development. In so many cases we can thank
our customers who have brought new insights from their own spectrum and worked with us to develop
these ideas into reality. These ideas when worked on in close parallel with our past knowledge often
generate great methods of accomplishing tasks our customers face everyday. As we are a young
company in a young industry, we anticipate constant growth in new product development as we listen
and work to solve the transportation needs of our customers.