Presentation from VEEM Managing Director Mark Miocevich
VEEM is a precision marine technology disruptor with 50+ years’ experience & world-class WA-based manufacturing facilities. Market capitalisation of ~$60m –
- VEEM is the leading player in the gyrostabilizer industry, having recently sold the world’s largest gyro to large European shipbuilder, Damen Shipyards.
- It is the recognised global leader in propeller manufacturing through its features and designs
- Traditional engineering business underpins growth, is profitable and has long-term agreements in place including a $9m order from the ASC for submarine components
- Constantly focused on innovation and improving manufacturing processes to remain the market leader
- Senator the Hon Linda Reynolds CSC has officially opened the new VEEM gyrostabilizer facility
- VEEM has completed building the world’s largest, most powerful marine gyrostabilizer, VG1000SD, for a major European shipbuilder.
- The VG1000 SD will be shipped shortly to major European shipbuilder, Damen Shipyards, which constructs more than 175 vessels annually for customers across the globe
Last Friday, VEEM launched the world’s most powerful gyrostabilizer, the VG1000 SD. The function was held at our new gyrostabilizer facility, which was officially opened by Australian Minister for Defence, Senator the Hon Linda Reynolds.
VEEMs new 4000m² facility has been constructed to meet the rise in demand for VEEMs gyro products, including the VG1000 SD, and will have the capacity to produce over $100 million of gyros annually.
VEEM Managing director, Mark Micovech said: “The new facility allows us to significantly ramp up the commercialisation phase of our gyro products, enhancing our ability to capitalise on the rise in customer take-up of this disruptive technology.”
In addition to its gyrostabilizer range (which has significant defence applications), VEEM has developed a substantial defence business, servicing both surface and sub-surface combatants.
Special guests, Matt Keogh, Member for Burt, Yaz Mubarakai, Member for Jandakot and Damen representative, Camiel Curfs, joined over a hundred VEEM clients, staff members and investors as Senator the Hon Linda Reynolds, Minister for defence, officially opened and dedicated the building to the former VEEM chairman, Gary Miocevich.
The VG1000 SD, weighing 20 metric tonnes, will be delivered to European shipbuilding giant, Damen and installed on the revolutionary new Fast Crew Supplier, FCS 7011, which is expected to launch later this year.
The VG1000 SD, generating 1000kN.m of torque, easily eclipses the second largest gyro product VEEM produces, the VG260, which is approximately one quarter of the size of the VG1000 SD.
Camiel Curfs, Damen representative and event attendees were given the opportunity to witness the VG1000 SD in action under induced procession.
VEEM Managing Director Mark Miocevich said: “The successful completion of the VG1000 SD is the culmination of significant research and development investment into the product.
“I would like to congratulate the entire talented VEEM team, who after years of hard work has delivered a gyro product which is unrivalled anywhere in the world in terms of scale and quality.
“The VG1000 SD has a broad potential market, with the product best suited to vessels 60 metres to 90 metres in length, which encompasses luxury and superyachts, defence and civil vessels, and has further commercial applications including windfarm services, oilfield services, crew transfer and ferries.
“We are delighted to have such an internationally esteemed shipbuilder as Damen as the first customer for the VG1000 SD, and we anticipate that the successful delivery of the VG1000 SD will substantially increase interest in the product, which will help propel long- term value for our shareholders.”
The VG1000 SD will now be delivered to Damen to undergo extensive sea trials. The trials involved fitting two model VG260 SD VEEM gyrostabilizers to a 50-metre test vessel in the Netherlands, which was subsequently evaluated by Damen management and current and potential purchasers of Damen ships.
A special thanks to Senator The Hon Linda Reynolds for opening the new VEEM gyro facility and to all the guests who joined us for the official launch of the VG1000 SD.
Perth’s newest addition, a 6.5 tonne bell to be installed into the Perth Bell Tower to mark the centenary of Anzac, has become a reality this month with VEEM recently completing a successful casting pour.
VEEM was heavily involved in bringing the Anzac Bell to life, from working with designers to develop 3-D printing to show the giant frieze through to test castings of decorative elements.
Even though the final tuned weight will be approximately 6.5 tonnes, a total of ten tonnes of liquid bronze (80% copper & 20% tin) was needed to properly cast the ANZAC Memorial bell, which was undertaken on the 3rd of August.
Representatives from the Bell Tower, the Minister for Culture and the Arts, and the MP for Jandakot were present at the pour as well as the RSL and the Royal Australian Navy, as the senior service of the Australian Defence Forces.
The Anzac Bell is the first of its sort to be cast in Australia and it will be the largest swinging bell in the Southern Hemisphere. It is expected to last over 500 years and would be a lasting legacy to acknowledge the Anzac centenary.
The Perth Bell Tower is currently home to 17 bells which are made up of 12 bells from St Martin-in-the-Fields and 5 bells from the London diocese of the Church of England. These bells were gifted to Western Australia as part of the nations bicentennial celebrations in 1988.
VEEM Ltd (ASX:VEE) and Aurora Labs Limited (ASX:A3D) have signed a non-binding term sheet to investigate the potential of Aurora’s 3D printing and large format technology to deliver cost and efficiency savings for the manufacture of VEEM’s specialist technology, including its propellers, fin systems and world-leading gyrostabilisers.
Aurora Labs is an Australian technology and innovation company specialising in the development of 3D metal printers, powders and digital parts. Aurora is currently testing revolutionary industrial grade, high speed, large format 3D metal printers that can be used for large-scale industrial manufacturing on a cost-effective basis.
VEEM Ltd is a manufacturer of high technology Marine Propulsion & Stabilization Systems. VEEM Managing Director Mark Miocevich said “there is huge potential in the use of 3D printing technology to manufacture a range of complex components used in VEEM products, medium and large format 3D printing, especially using metal alloys, is notoriously challenging,” Mr Miocevich said. “Reliability and endurance are critical for high- intensity applications.
“Aurora’s Large Format Printer, if proved, could provide real cost and productivity improvements for VEEM.” The agreement between VEEM and Aurora Labs is based on a 4-stage process:
- VEEM reviewing and critically analysing Aurora Products and their potential capabilities (Stage 1);
- Aurora assisting VEEM to assess the potential value to VEEM of utilising Aurora Products in VEEM’s operations (Stage 2);
- The parties identifying and evaluating potential opportunities to secure government research and development (R&D) incentives, grants or funding for projects related to the Venture Program (Stage 3);
- VEEM being provided with the opportunity of making an equity investment in Aurora (Stage 4).
Aurora Labs Managing Director David Budge said “VEEM is at the forefront of technology development and innovation, making them an ideal industry partner for Aurora.”
VEEM products are supplied to some of the world’s leading shipbuilders and marine suppliers including ASC, Austal, Rolls Royce and Volvo. VEEM propellers and fin systems are in use on recreational, commercial and defence platforms globally.
In May 2018, the VEEM Gyrostabilizer VG260SD was selected by Friere Shipyard (Spain) as the roll stabilisation system for a 42m fishery patrol vessel for the Government of Kuwait. In June, Europe’s second largest shipbuilder, Damen, conducted sea trials using VEEM Gyrostabilizers off Rotterdam, Holland. Results of the sea trials are due to be announced soon.
Aurora Labs has developed the most advanced process we have evaluated and represents a significant step forward in large and rapid 3D printing.”
Mr Miocevich noted that the finite nature of natural resources and the full cost of energy are precipitating a move away from traditional reductive manufacturing.
“Additive manufacturing through 3D printing is developing rapidly around the world,” Mr Miocevich said.
“From being an expensive option for small components, recent technical developments in 3D printing point the way toward larger sizes and far more rapid production rates.”
“VEEM is excited to be able to partner with Aurora Labs to bring the future of additive manufacturing into the present, VEEM sees itself as a role model company for the Australian Government’s drive to develop high-end manufacturing exports,” Mr Miocevich said. “This agreement with Aurora, another great Australian technology innovator, is a great step forward for both companies.”
VEEM Ltd was recently inducted into the Family Business Australia FBA WA Hall of Fame, joining other successful WA companies with rich histories and contributions to the Western Australian economy.
VEEM was established in 1968 by Voyka and Elizabeth EliseMiocevich and began as a small engineering services company specialising in the repair and dynamic balancing of drive shafts, engines and other rotating equipment.
Today VEEM a is a marine technology company specialising primarily in propulsion and stabilisation systems and also provides products and services to the marine, defence and mining industries. The company has grown to become a premium manufacturer of sophisticated equipment for a variety of industries and was awarded the Australian Marine Exporter of the Year in 2012 and 2013.
VEEM is a proud family business, with a strong European work ethic, a focus on engineering perfection and a “can do” problem solving approach. These qualities are now firmly embedded as core company values and are reflected in the pride taken to deliver a first class product to their customers.
Watch the short videos below.
The world’s highest earners may not know it, but when they spend over $5,000 an hour for the privilege of using Sydney Harbour-based super yacht Tango they can thank local advanced manufacturer VEEM Ltd. for their smooth ride.
Tango, which has hosted such names as Richard Branson, celebrities Katy Perry, Brad Pitt and Justin Bieber, as well as the King of Norway, the CEO of Chanel and the manager of Manchester United, Jose Mourinho, is among the first clients to receive one of ASX-listed VEEM’s game changing gyrostabilisers, designed for the large boat market.
These patented stabilisers significantly reduce “roll” during sail, increasing safety, reducing seasickness and generally making the journey much smoother and more pleasant.
“The super yachts, the workboats, ferries, patrol boats – from 100 tons to 3,000 tons — that market is massive and upwards of a $1billion-a-year market for us,” Managing Director Mark Miocevich says.
“Our first sales have been in the super yacht area. They are early adopters and having a new technology that performs better is something that they are very likely to move toward.”
VEEM, founded in 1968, has already had long success revolutionising the manufacture of propellers with the use of advanced manufacturing techniques to make them faster, smoother, quieter and easier to maintain and replace. The firm earns around half its turnover from exports, and also boasts significant defence work, with the Australian Submarine Corporation awarding VEEM the first of a new generation of partnering contracts for the Collins Class Submarine in 2014.
VEEM manufactures its sophisticated castings in Australia to best manage the complexity.
The firm, which listed on the ASX in October, uses patented, robotic processes to make casting moulds, enabling VEEM to manufacture any shape of propeller simply by selecting the program and eliminating the need for traditional wood patterns for propeller castings — a major cost saving and innovation.
“We have the most advanced propeller manufacturing facilities in the world. It is absolute state-of-the-art,” Mr Miocevich says, adding that VEEM also fully machines every millimetre of the propeller surface using computer numerically controlled (CNC) machines.
“We have a factory full of them and they run 24 hours a day, lights off. So they are automatically run by a laser-operated robot forklift, which loads and unloads the machines by itself,” Mr Miocevich explains.
Being located in in Canning Vale, around 20 kilometres from Perth, is a benefit rather than a hindrance, he says, maintaining a lot of IP protection simply by being remote.
“Remoteness to market is actually quite valuable. Being based in Perth, Western Australia, being so far from anywhere, we tend to not have the cross-pollination of techniques to other companies. For example, in England there are three propeller manufacturers and their employees move from company to company, so any new technique they develop is lost very quickly.”
Modern transport also means long distances are not a huge percentage of the cost of the product in the way they used to be.
“This model of using high-technology, good IP protection, creating global market niche products is what Australia needs to look for to be successful in manufacturing. Australian manufacturing has to come back in a different form to what it was before and we believe the model that we have got represents that new thinking,” Mr Miocevich says. “I am optimistic if you have the right model.”
“That is where the cleverness is and that IP needs to be protected. So the critical components we manufacture and assemble here and then export from here. That seems to be the model that most people are using globally nowadays.”
The newly-released gyrostabilisers have been sold to vessel owners in New Zealand, the US, and The Netherlands, and there is interest from defence contractors to improve the operational performance of a patrol boat for activities such as launch and recovery of vessels, accuracy of weapons and safety and comfort of crew.
There is also potential around high-speed crew transfer vessels which may replace helicopters in ferrying crew from oil platforms to oil rigs.
“We are seeing interest from a number of sectors and the ramifications are very large. You still have the old ‘pitch and heave,’ so front and back you get movement, and up and down with the swell, but none of this rapid side-to-side roll that boats experience,” says Mr Miocevich.
“If the vessel is rolling significantly it is very unstable for human beings to walk around, and as you are loading it swings violently. We can also significantly reduce seasickness so that when people are working they are more efficient and more productive.”
VEEM looked around the world and developed a global supply chain very similar to some of the major players in the marine sector, such as Rolls-Royce Marine, modelling itself on the best and brightest in the industry.
Mr Miocevich says Australians are natural innovators who punch above their weight in the list of global inventions – everything from the electric drill to the black box recorder to Cochlear – perhaps because of our historical isolation.
“Getting things from overseas was difficult and time-consuming, so we’ve always had the philosophy [in Australia] that if we were repairing something and we couldn’t buy the part, we’d just make it. Many, many great Australian companies are exactly like that,” Mr Miocevich says
Mr Miocevich also says the government’s defence initiative was a “masterstroke” for local manufacturing, because unlike the auto industry many of the contractors are Australian-owned companies.
“What we are doing now is developing a whole raft of SMEs and larger companies that are Australian companies – and that is developing a wide range of skills and businesses in this country which I think provides a much stronger future, and you can export a lot more because of it,” he says.
Dynamic Export Magazine, 5th May 2017
When Australian marine engineering excellence, leading edge innovation, perseverance, vision and focus are joined with advanced manufacturing capability you have the hallmarks of Perth based success story VEEM Ltd, a high technology manufacturer of Marine Propulsion and Stabilization systems.
By rigorously applying advanced design and manufacturing techniques VEEM has produced leading edge products that now sit astride some key global markets. More than 40% of VEEM sales are from exports.
Importantly, export sales are being won in some of the most competitive markets in the world where product perfection and unrivalled performance are the standard.
From modest beginnings as a small engineering services company specializing in the repair and dynamic balancing of drive shafts, engines and other rotating equipment, VEEM Ltd is a proud family business with a strong European work ethic that has grown to become a premium manufacturer of sophisticated equipment for the marine, aerospace, defence and oil and gas industries.
The video celebrates VEEM Ltd’s induction into the FBA Hall of Fame, in recognition of Elizabeth Miocevic and previous generations of the family.
The edited VEEM Ltd. video has been featured on Family Business Australia’s social media.
The original video was revealed to a capacity audience at the FBA (WA) Hall of Fame Gala Event, Nov. 2016.