ZF Marine Gears up for Second World Record Attempt by Earthrace

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                                Propulsion Systems


 Recognized for Success                          Technical Information                        SWATH vessel with
                                                 Around the Clock                             ZF 9350 NCB transmissions

 Page 6                                          Page 9                                       Page 16

 ZF Marine Gears up for Second World Record
 Attempt by Earthrace

Earthrace is an incredible 78ft wave-piercing trimaran powerboat that runs as a carbon neutral project, exclusively on 100% biod-
iesel. The boat started its second attempt to break the round the world speed record in mid April, leaving from Sagunto in Spain,
after undergoing a full pre-record refit at the Vulkan Shipyard.
                                                                                                                          (see page 18)
                                                          ZF Marine Companies
                                                          4        ZF Padova Wins International Best Factory Award 2007
                                                          4-5      Control Systems Training at ZF Padova
                                                          5        ZF Padova Hosts ZF Group Q-SPRINT Program
                                                          6        Recognized for Success!
                                                          6-7      Assembly Plant Modifications at ZF Marine GmbH
                                                          7        Miami Boat Show 2008
                                                          8        SteerCommand – New Steer-by-Wire system!

                                                          ZF Marine Group
                                                          9        ZF Marine After Sales goes online
                                                          9        Technical Information Around the Clock!
                                                          10-11    What is Controlling / Finance for ZF?
                                                          11       Compliance (Corporate Governance)
                                                          12       ZF Marine TQM Contest 2008

                                                          Market Segments
                                                          13       SmartCommand – Continued Success!
                                                          13       First Meeting of “European Distribution Center” (EDC)
                                                          14       The 5th Ferretti “Convergence 2008”
                                                          15       Joystick Controls

Impressum: Issue 01.2008                                  15       ZF 9000 Series - Application in China
                                                          16       SWATH vessel with ZF 9350 NCB transmissions
news     Marine Propulsion Systems:
                                                          17       New PTO and integrated shaft brake for ZF W17000
A newsletter for employees and
business partners of ZF Marine Group

Published by:
ZF Padova SpA, Italy
Via Penghe 48,                                            News from the World
I - 35030 Caselle di Selvazzano (PD)
Phone: +39 049 8299-311                                   16 -17   New Boats from Bénéteau
Internet: www.ZF-Marine.com                               18       ZF Marine Gears up for Second World Record attempt by

Editorial Responsibility:
Marketing & Communication                                 18-19    British Tug for Caspian Sea
Thomas Jaffke, Peter Herring,
Elisabetta Bettio, Martin Meissner                        19       HISWA in Amsterdam

Circulation: 5500                                         20       ZF Marine in Croatia

                                                          20-21    Eurodiesel Move to New Offices
R. Heil, T. Jaffke, P. Herring, M. Meissner, E. Mugler,   21       Another Passenger Vessel built in Tasmania!
F. Cecolin, V. Rasera, G. Pinton, E. Crepaldi,
A. Zanfei P. Di Muro, T. Siegmann, A. Varisco,            21       Back on a Winning Streak
R. Hage, W. Goetz, P. Trauter, F. Schmauz-Puccini,
T. Hameister, G. Bain, P. Nelmes, Qiwei Yao,              22       New Dealer in Peru
B. Beverley, E. Malerdos, B. Zdjelar/T. Malpera,          22       ZF Marine Rugby - The 2008 New Zealand Tour
M. Ochoa, P. Gonzalez-Orbegoso
                                                          23       Megayachts from Brazil

2   news    Marine Propulsion Systems
 ZF Marine Group

Dear ZF Marine Team,
The ZF Marine Group continues its positive development despite a currently difficult
business environment with accelerating risks and strong competition. This has been
possible through rigorous implementation of our strategies to address our markets:
"improvement of existing products, new products in existing markets and new prod-
ucts in new markets” and our strategies addressing synergies, logistics, quality and

By this means, we can be sure that the organization as a whole is able to meet its
business plan targets regarding growth, profit and market position. This result is only
possible through the coordinated commitment of all employees in the organization,
focused to satisfy the customer's needs in an increasingly more complex business

The on-going, world-wide financial difficulties in the banking sector are also challeng-
ing for business opportunities of ZF Marine in the Pleasure Craft market, particularly
in one of its most important markets, the USA. These challenges are being addressed
by the accelerated development and introduction of new products and approaches for this market. These include the new "joy-
stick" control and the European "Center of Competence" for complete shaft-line systems, on which you will find more details
within this issue of NEWS. Many of these activities already yield positive results, particularly in terms of customer satisfaction,
paving the way for future success.

Besides introducing new products, continuous improvement of existing products is an important development activity in order
to satisfy an ever-changing marine propulsion market. Especially within in the Fast Craft market segment, customers need the
highest quality and highest technological expertise. These demands are met by ZF Marine’s highly specialized staff, continu-
ously improving products and services.

An unprecedented up-turn in the demand for vessels of all types within the Commercial Craft segment shows no sign of relenting
and presents ZF Marine with many challenges regarding product capacity and product range development. These challenges are
successfully addressed, thanks to the expertise and knowledge synergies built up over the years within ZF Marine’s worldwide
network of manufacturing, sales and service locations.

Despite being a relative newcomer to this market segment, ZF Marine has made major in-roads into areas which some years
ago were uncharted waters. Today, we are proud to be a respected global player in this difficult environment, with formidable
production capacity in our locations worldwide and with an excellent service network, ready to serve our customers’ needs.

The strength and continuous success of ZF Marine is based on the commitment and enthusiasm of all employees, dedicated to
satisfying customer needs. This is the major factor on our way to becoming a worldwide leader in marine propulsion systems.

I would like to thank all of you and I am convinced that, with our enthusiasm and perseverance, we will continue on our suc-
cessful path.

Roland Heil
ZF Marine Chief Executive Officer

                                                                                                                        01.2008   3
 News from ZF Marine Companies

ZF Padova

ZF Padova Wins
International Best Factory Award 2007
                                           ness results. This annual competition       effort which has resulted in the lean
                                           also gives formal recognition to those      production processes currently imple-
                                           factories which have shown the most         mented. The “continuous improvement”
                                           outstanding performance.                    at ZF Padova has become an inherent
                                                                                       part of the company itself, in particu-
                                           The IBFA was first introduced to Italy in   lar the system of quality indicators for
                                           1998, in collaboration with the SDA Boc-    review and reaction (IQR) and monthly
                                           coni School and the national financial      meetings concerning these indicators.
                                           newspaper “Il Sole24Ore”, supported         This ensures a successful adaptation in
                                           by the Italian Ministry of Industry. In     a constantly changing global environ-
                                           2007 three companies were recognized,       ment and in the various marketplaces
                                           namely:                                     addressed by the company.
Last year, ZF Padova participated in       ‚ the award winner, Weir (centrifugal
the competition for International Best       pumps)                                    The actual IBFA recognition handed over
Factory Award (IBFA), which was estab-                                                 by SDA Bocconi to ZF Padova states the
                                           ‚ Coca Cola company, recognized for
lished in 1992 by the British “Cranfield                                               following: “For the improvement of the
                                             excellent production and logistics
School of Management” together with                                                    production and logistics performance,
the magazine “Management Today”. The                                                   with particular reference to quality
IBFA focuses on monitoring processes       ‚ ZF Padova, recognized for efforts in      management, reduction of lead time and
for manufacturing and logistics within       continuous improvement                    increase of operational flexibility”. We
prominent factories and identifies the                                                 would like to thank all employees who
“best practice” approaches which these     In fact, the auditors who visited ZF Pa-    helped us to receive this acknowledge-
companies use to achieve optimum busi-     dova were impressed by the exceptional      ment.

Control Systems Training at ZF Padova
SmartCommand® has doubtlessly become a reference product for ZF Marine, being an incredibly versatile system, able to man-
age marine propulsion systems of all types. These include traditional shaftline systems and also new products like the Zeus
Pod-Drive, in combination with “joystick control” (see related article in this NEWS issue). To explain in detail to ZF worldwide
Sales and Service Organisation the multiple functions and applications of SmartCommand, a training course was held at ZF
Padova during December 2007. This addressed not only SmartCommand, but also all other controls products.

The event was split in two sessions (Session 1: Dec 3-4 Session 2: Dec 5-6) to limit the number of participants in each work-
group, thus facilitating practical training. These sessions have now become regular fixtures in the annual training schedule for
control systems at ZF Padova. Apart from the logistic advantages, it’s a convenient location being close to Venice and Verona,
with plenty of opportunity to sample good Italian food! As usual, the trainers were John Skvarla, from ZF Marine Electronics,
and Enrico Crepaldi (International Sales Manager, Control Systems) who expertly explained the products and answered ques-
tions from the nineteen participants.

By means of both theoretical and practical sessions, everyone was given thorough explanations of the technical functions and
specific selling points related to SmartCommand, MiniCommand, Series 9000 (MicroCommander and ClearCommand) and
CruiseCommand. In addition, participants were informed about upcoming products like the Smart Backup and SkiCommand.
Training materials were distributed, enabling the technicians to study in more detail when they returned home.
 News from ZF Marine Companies

ZF Padova Hosts
ZF Group Q-SPRINT Program
From 9th to 14th March, ZF Padova             The program is structured in four sepa-
was host to one of the ZF Group’s train-      rate “blocks” (see diagram). The first
ing blocks in the “Q-SPRINT” program.         block took place in Friedrichshafen (Ger-
“SPRINT” is an acronym for Specialist         many) in November 2007 and addressed
PRofessional INTernational, the name          the themes:
of an employee development program            ‚ Teambuilding
focusing on Quality, which was coordi-
                                              ‚ Project Management
nated and conceived by PZP and sup-
ported by VVQ-E.                              ‚ Project Definition “lessons learnt”

                                              ‚ Quality at ZF
The aim of this program is to enhance
                                                                                          Participants of Q-SPRINT with Mr. Heil (CEO
company-wide networking among de-                                                         ZF Marine), Mr. Padoan (HR Manager ZF Marine)
partment representatives within the ZF        The second block, a five day event at a     and Mr. Cecolin (Business Excellence Manager
Group. A group of “top-performers”, with      hotel near ZF Padova, addressed:            ZF Marine)
3-5 years working experience at ZF, were
                                              ‚ Virtual Cooperation in Project Teams
selected to act as catalysts for supporting                                               team which evaluated the performance
the ZF Quality Guidelines within the          ‚ Development Assessment Center
                                                                                          of the participants. On the last day,
various divisions and business units of       ‚ Product Liability                         the participants had the opportunity to
the ZF Group.                                                                             carry out a benchmarking exercise at
                                              ‚ Benchmarking
                                                                                          ZF Padova, analyzing processes such
During the program, which lasts18                                                         as Planning, Purchasing and Assembly,
months, twelve participants, represent-       ZF Padova management personnel were
                                                                                          presenting their findings and offering im-
ing seven divisions, eight locations and      directly involved, with Eberhard Mugler,
                                                                                          provement solutions to the Management
five countries, form a formidable inter-      Francesco Cecolin and Thomas Jaffke as
                                                                                          Team. Finally, they met with Mr. Roland
national team!                                members of an Assessment & Feedback
                                                                                          Heil (CEO, ZF Marine) and shared their
                                                                                          impressions of the training program and
                                                                                          their experiences at ZF Padova.

                                                                                          Despite the intensive training activities,
                                                                                          there was still time to visit Padova and
In general, participants thought the course was extremely useful and appreciated
                                                                                          enjoy the exquisite Italian food! On
the high level of teaching and information received. Questionnaires were filled
                                                                                          leaving, the participants expressed their
in to assess course effectiveness and this feedback showed a distinct improve-
                                                                                          gratitude for the perfect organization
ment, thanks to changes introduced as a result of recommendations given by
                                                                                          of the event, as well as the support and
participants in previous courses. The success of this course confirmed the need
                                                                                          feedback given to them during this train-
for this training to continue on a regular basis. Anyone interested in attending
                                                                                          ing block. We wish the team good luck
future courses should e-mail - info.controls@zf.com - for details.
                                                                                          in their future development!

Controls training at ZF Padova

                                                                                                                           01.2008   5
 News from ZF Marine Companies

ZF Marine LLC

Recognized for Success
                                                                  From left: John Shea, Stephan Cloutier Vice President - Procurement,
                                                                  Mercury Marine, AJ Halavacs.

ZF Marine LLC was recently chosen by         played a significant part in this year’s         sport” engines. The ZF “Ski Vee” (ZF 45
Mercury Marine to receive their pres-        success”.                                        IV transmission) will also undergo the
tigious “Supplier of the Year Award”.                                                         rugged MerCruiser qualification pro-
Each year, Mercury Marine evaluates          “Other departments’ contributions were           cess for future availability on Mercury
over 1,500 suppliers, and selects only       significant as well” said Halavacs, noting       engines.
twelve to receive this important award.      the contribution of Angel Serbia, who
AJ Halavacs, Pleasure Craft Segment          works with the MerCruiser expediters to          Of course, we can’t forget our joint de-
Manager and John Shea, Account Man-          insure a smooth flow of product and on           velopment with Brunswick on the Zeus
ager, received the award on behalf of ZF     time delivery. He continued, “With an            project and regarding the importance
Marine LLC at Mercury Marine’s Sup-          on-time delivery performance of 100%             of this project to our future success,
plier Conference in Sarasota, Florida        in the last twelve months, we maximized          Halavacs concluded “this award further
in April.                                    our score in that category”.                     strengthens our partnership with one of
                                                                                              the leading marine engine manufactur-
“This award belongs to all of ZF Ma-         The future of our partnership with Mer-          ers in the industry. Everyone in the ZF
rine” said Halavacs, and continued “it       cury continues to be bright. According           family should take pride in their part of
takes a total team effort from all depart-   to John Shea, ZF Marine is working               this accomplishment”.
ments in order to achieve this status.”      hard to attain a three year, 100% supply
Shea pointed out that, with the largest      agreement with Mercury Marine. In ad-            Congratulations, not just to the sales
percentage of points being awarded           dition, starting in July, the ZF 45C with        team of AJ, John and Angel, but to ev-
for product quality, “our factory in         electric shift will be the new transmis-         eryone at ZF Marine who works so hard
Arco and our Material Handling group         sion on all MerCruiser catalyzed “tow-           on this business!

ZF Marine GmbH

Assembly Plant Modifications at ZF Marine GmbH
                                             The second phase of changes to the               ‚ Erection of final assembly areas - Nos.7
                                             assembly plant at ZF Marine GmbH,                 to 16 (ZF 3000 + ZF 2000)
                                             Friedrichshafen has now been com-                ‚ Erection of assembly areas Nos.17 and
                                             pleted.                                           18 (Service Dept. assembly areas)
                                             This included the following:                     ‚ Erection of subassembly areas (three
                                             ‚ New, hard-wearing and easy to clean             in total, for ZF 3000 and ZF 2000
                                              flooring surface                                 ranges)
                                             ‚ Optimum organization according to the          ‚ Renovation of the cabling assembly
                                              flow of materials                                area (three assembly stations and one
                                             ‚ Optimum ergonomics at the work stations         programming station)
Miami Boat Show 2008
                                                                From left: Roland Heil (CEO ZF Marine Group), Peter Schippers and
                                                                Roland Leistner (M.A.N.), Günter Rothenhaeusler (ZF Marine Gmbh
                                                                General Manager)

The 2008 Miami boat show seemed            In particular, they were very interested       Hotel on Belle Isle, in Miami Beach. The
rather quiet, without attendees cram-      in the joystick controls being developed       venue was on the water overlooking
ming the aisles as in previous years.      by ZF Marine Electronics for boats with        Biscayne bay, which gave us the oppor-
Both boat builders and ZF Marine sales     standard shaftline systems. Customers          tunity to demonstrate a Sea Ray boat fit-
people agreed that the show was a real     were also very interested in POD drives        ted with our Zeus POD drive. Everyone
disappointment with many vendors           for both lower and higher horsepower           could see for themselves how well the
selling less then 50% of their intended    ranges then currently covered by the           boat performed and could be controlled
targets. However, this wasn’t totally      present Zeus product. The customer             using this new drive technology.
unexpected by people in the marine         demand for smaller and larger POD
industry who generally thought this was    units is so strong that ZF Marine Group        As last year, ZF Marine again chose
a reflection of the sagging economy and    management has agreed to employ ad-            to raise money for a marine industry
high price of fuel.                        ditional engineering personnel at ZF           school during the reception. For each
                                           Marine Electronics so that these prod-         person that attended the event, this
Analysts predict that business will        ucts can be brought to market as soon          time we donated $100 to the Inter-
stagnate, or even decrease, within 2008    as possible.                                   national Yacht Restoration School in
and recovery is only expected beginning                                                   Newport, RI and Terry Nathan, Presi-
2009. In anticipation of better times,     ZF Marine also took the opportunity            dent of the IYRS, gave a short speech,
our boat building customers were very      to invite key customers to an evening          telling our guests about the school and
keen to talk about the new technology      reception on the first night of the show.      providing further information. When
being developed by ZF Marine which         Approximately 100 people representing          all the contributions were counted,
will be attractive for installation in     some of our biggest key customers came         we were able to hand over a check for
their next generation of pleasure craft.   to an outdoor reception at The Standard        $10,000.

Concluding this phase, we a very pleased   The next phase of modifications will
to report that we have achieved our in-    include:
termediate targets, namely:
                                           ‚ New load test bed for series transmis-
‚ Improve ergonomics                        sions
‚ Increase productivity                    ‚ Transmission washing station
‚ Optimise material flow                   ‚ Rearranged packing and dispatch
‚ Completely revise and improve the         area
 floor marking layout, material holding    ‚ Optimized parts warehouse for the
 and order disposition areas                Service Dept.

                                                                                                                           02.2007   11
 News from ZF Marine Companies

ZF Marine Arco

SteerCommand – New Steer-by-Wire System
A major project concerning the development of a new product,        that the captain has superb control, with maximum safety
initiated by ZF Marine Arco, has now come to fruition. The          at any speed.
product, SteerCommand, is a “steer-by-wire” system intended
for installation in pleasure boats and will be introduced to the    Rigorous testing, monitoring and analysis of results has also
market later this year.                                             shown that it takes less time to do a 360 degree turn and the
                                                                    boat is more stable, staying almost horizontal even at high
Developed in conjunction with ZF Marine Electronics and             speed. This performance is possible due to the servo-assisted
the Ferretti Group (one of the world’s largest and renowned         movement of the rudders, resulting in more precise control
builders of luxury motor yachts), SteerCommand incorporates         of rudder angle. In a curve, the inboard and outboard rudder
state-of-the-art technology to provide a clean, reliable and ef-    angles are individually adjusted for optimum performance.
ficient alternative to traditional hydraulic steering systems.
The technology is not new, being well known in the aviation         The helm is connected to an electric motor which uses
industry however this is the first application in pleasure craft.   CAN-bus to communicate with a processor. This computes
Among the many advantages over conventional hydraulic or            the input signal then transmits to the linear actuators which
mechanical steering systems, are improved boat handling,            move the rudders. SteerCommand is designed to be perfectly
reduced maintenance, easy installation and reduced weight           safe and100% redundancy is guaranteed since if a processor
and volume. The SteerCommand range comprises four mod-              fails, the other processor can operate both rudders. Should
els, specifically designed for various sized yachts between         a linear actuator fail, the other will enable the boat to reach
50 – 85 ft length.                                                  port on one rudder.

Like steering systems in luxury cars, it is now possible to have    Compatibility with ZF Marine’s existing SmartCommand
the same control also in luxury boats through the reactive          propulsion control system means SteerCommand can be
electronic force feedback system provided by SteerCommand.          interfaced with autopilots using GPS, so yacht builders and
Controlled through the proven ZF Marine SmartCommand                owners can benefit from having complete control from a
control system, the positive feedback at the helm is such           single supplier.

SteerCommand Scheme                                                 Active Feedback Helm Unit

                                                                    Rudder Actuator

8   news   Marine Propulsion Systems
 ZF Marine Group

ZF Marine After Sales Goes Online
The acronym “WeSSON” stands for “Weiterentwicklung                    be administered and monitored. As soon as an order leaves the
SSO-Network” (“Further Develop-ment SSO-Network”) and                 factory, the delivery note and invoice are visible in WeSSON. In
incorporates B2B (Business-to-Business) Internet communica-           addition, using “Global Stock”, the SSOs linked to the system
tion between ZF’s Sales and Service Organization (SSO) and            can check the respective stocks of specific parts in both SSO
the individual factories. Each SSO can, via Internet, input and       and factory warehouses.
monitor the spares orders shown in their respective ERP sys-
tems. The data is maintained in real-time, therefore business
                                                                      The WeSSON system was developed as a ZF Group project in
processes are more efficient and transparent, without having
                                                                      order to replace various ITS systems which have been intro-
to send time consuming queries to the factories.
                                                                      duced in different locations over the years. Fortunately, since
                                                                      2003, ZF Marine GmbH has used an ITS system, so that it was
WeSSON supports the SSO’s Order-Processing with numerous              logical that, in 2006, ZF Marine GmbH became the first fac-
functions. Already when the order is being placed, the buyer          tory within the ZF Marine Group to change over to WeSSON.
receives actual information concerning price and delivery             ZF Padova SpA, Italy, followed a year later and at present ZF
from the factory. Parts that are regularly ordered can be put         Marine Arco, Italy, is well on the way to introducing the system.
in a shopping basket so that re-peat orders can be made with          For Arco, however, it is more complicated because their ERP
a few mouse-clicks. Naturally, all parts lists available in digital   system is based on IBM AS/400, whereas the other factories
form can be uploaded and converted into orders. Using clearly         use SAP. Nevertheless, introduction will be effected during
arranged lists and simple search functions, existing orders can       summer, 2008.

                                                                               WeSSON Portal: https://sso.zf.com/portal_CS/

            Portal ZF-ServiceLine (https://serviceline.zf.com)

Technical Information Around the Clock
The ZF-ServiceLine is an Internet-based platform, developed           Guarantee documents, contact details for locating respon-
by the ZF Group, permitting access to technical service in-           sible factory personnel, as well as Spares Kits, Optional
formation related to products from virtually all ZF business          Accessories and Installation Instructions. The relevant
units, including the ZF Marine Group. This application has            pages are specifically created by the service personnel
considerable advantages, enabling high quality transfer of            responsible for their particular products. The project team
detailed information, quickly and efficiently. Service docu-          within Dept. MC-C is continually developing and expanding
mentation can be viewed and downloaded around the clock,              the application and is always available to offer assistance,
seven days a week. Naturally, the application is password-            when necessary.
protected to prevent unauthorized access. By this means,
ZF has succeeded in creating an extensive digital “Service
                                                                      ZF Marine GmbH in Friedrichshafen pioneered the appli-
Library” for the benefit of all customers who require fast
                                                                      cation within the ZF Marine Group and, acting as “Service
and precise information concerning products.
                                                                      Coordinator”, is working on integrating both ZF Padova
                                                                      SpA, Italy, and ZF Marine Arco SpA, Italy, into the system. A
The wealth of information includes Operating and Repair               further step will be to extend the ZF ServiceLine to include
Manuals in all available languages, Service Newsletters,              ZF Marine Electronics LLC, USA.

                                                                                                                              01.2008   9
 ZF Marine Group

What is Controlling / Finance for ZF?
ZF wants to rise to current and future challenges by creating       ProcessOrientation - We are committed to the entire
high customer benefit, technological leadership, and a sustain-     company.
able increase in the company value. We, who are responsible for     Consistency of information and decision making processes
Controlling/Finance at ZF, see this Controlling/Finance model as    is organizationally ensured. The increase in the value of all
the basis for our actions and an active contribution to achieving   processes and thus also of the company is of top priority. For
ZF’s corporate targets.                                             everyone involved in Controlling/Finance this means: Integra-
                                                                    tion of all affected areas and people and actively supporting
Corporate Controlling/Finance in the ZF Group (incl. the regional   the management of value drivers.
organizations) specifies group-wide directives, procedures and
methods which are elaborated and mapped out together with           DecisionOrientation - We prepare information for decision
the divisions. This ensures a unified strategy and consistent       making.
implementation of the group management concept. The de-             Controlling is organized in such a way that management is
centralized Controlling/Finance units share the responsibility      effectively supported in the accomplishment of its tasks and
for determining, developing and achieving the targets of their      in decision making. We assume a clear position in decision
divisions, strategic business units and locations.                  making and provide you with clear management proposals;
                                                                    we as management team members also actively participate in
                                                                    the decision making and assume responsibility.
Controlling/Finance is the commercial area of responsibility in
which both financial accounting and controlling functions are
                                                                    SystemOrientation – We provide Know-how for financial
                                                                    & business administration methods.
                                                                    Joint action within a matrix organization and a team-oriented
                                                                    management organization requires a common information
                                                                    platform for everyone involved. Controlling/Finance members
                                                                    support the management process with financial and business
                                                                    administration expertise with focus on the overall company.

performed. Controlling and finance functions are not the busi-      Quoting our internal customers:
ness of a few specialists only, but also of management and all      “Modern controlling is an integrated element of operational
those employees involved in the processes.                          processes.”
                                                                    Hans-Georg Härter, CEO Friedrichshafen
Controlling/Finance is financial and commercial business lead-
                                                                    “Modern and efficient controlling is the prerequisite for the
                                                                    success of a group which, at the very same time, is highly
Controlling/Finance means thinking and acting according to our      decentralized as well as globally aligned.”
four directions of orientation.                                     Wolfgang Vogel, Friedrichshafen

CommunicationOrientation - We establish a dialogue with
you.                                                                “The level of transparency generated via a functioning control-
                                                                    ling system is an indispensable compass for our operational
We actively communicate with everyone involved and provide
our expertise in a customer-oriented manner. We coordinate the
tasks in the international organization and its networks.           Dr. Manfred Schwab, Passau

10   news   Marine Propulsion Systems
 ZF Marine Group

“Modern controlling in our global environment is a co-pilot in     “Global business responsibility can only be perceived by means
our trip towards success. It acts as a business partner engaging   of standardized processes and a unique controlling system. To
itself in removing barriers and finding the optimal way to reach   this end, modern business controlling generates the necessary
our targets. This is done with knowledge of ‘our business’, the    basis.”
needs of our internal and external customers and wide and          Julio Caspari, Northville (USA)
strong motivation and communication through a common ZF
Wilson Bricio, Sorocaba (Brazil)

Compliance (Corporate Governance)
an important element for correct and responsible company management

The term “Compliance” denotes not only the adherence to            In January this year, the ZF Marine Group created a “Compli-
company laws and guidelines, but also abidance by voluntary        ance sector” within the Controller Matrix headed by Peter
codes of conduct. Furthermore, company guidelines should           Trauter reporting to the Finance and Controlling Director,
naturally be in harmony with socially accepted practices and       Eberhardt Mugler at ZF Padova. Since Peter Trauter retired in
values. Despite this, companies can nowadays still slide into      June, this “Compliance” responsibility has now been taken over
disrepute, as recently reported in an American newspaper           by Frank Schmauz-Puccini. In cooperation with the respective
which carried out a nationwide survey.                             controllers at other manufacturing locations and employees in
                                                                   specialist departments, various procedures are being analyzed,
Within the marine industry, there are a multitude of laws con-     defined and modified with a view to minimizing risk.
trolling fair competition, product warranties, foreign trading
and intellectual property rights. Nevertheless, throughout the     The target is to develop a pro-active Compliance System for
long lifecycle of a product, inter-company interests or other      focussing actions in line with ZF Marine’s long-term strategy.
dealings could arise within the supply chain. ZF Marine’s par-     Having an overview of the “opportunities and risks” situation
ent company, ZF Friedrichshafen AG, has many departments           improves the ability to achieve company targets, raises com-
(e.g. Auditing, Legal, Accounting, Quality etc.) which deal with   pany values and protects company assets.
matters relating to “Compliance”.
                                                                   In this context, “Controlling” is to be understood as a strategic
                                                                   partner and not as a company policeman. By means of regular
                                                                   information exchange between operative departments, infor-
                                                                   mation will be collected, processed and implemented in the in-
                                                                   terest of the ZF organization. Continuous monitoring of trends
                                                                   and developments, in cooperation with specialist departments,
                                                                   and the integration of ZF’s Legal & Risk management, will serve
                                                                   to establish and expand the Compliance Network.

                                                                                                                        1.2008   11
 ZF Marine Group

ZF Marine TQM Contest 2008
                                                                  Evaluation categories (4th category – “Product Innovation
                                                                  Award” - added):

                                                                  1st Category (TQM Contest Award)
                                                                  • Projects leading to an improvement in organization, processes
                                                                    or products.

                                                                  2nd Category (Environmental Award)
                                                                  • Projects improving the ecological status of the company,
                                                                    significantly promoting the ecological awareness of the em-
                                                                    ployees or improving the environmental friendliness of the

                                                                  3rd Category (Information Protection Award)
                                                                  • Projects improving protection of internal information, for
As every year, the annual ZF Marine TQM contest is an
                                                                    - security of information within production areas and of-
important event and opportunity for teams from ZF Padova,
Marine Arco and ZF Marine GmbH to present their proposals
                                                                    - security of ZF internal information in public
for continuous improvement to a jury comprising the Manage-
ment Team of the ZF Marine Group. The winning team then             - integration of information protection within processes
has the opportunity to present their project to the corporate       - development of technical solutions for self-protection of
ZF management and also participate at a special weekend in           product data.
recognition of their contribution.
                                                                  4th Category (Product Innovation Award)
                                                                  • Projects which, through exceptional development, have led
The aim of the TQM Contest is to encourage high performance
                                                                    to the creation of a new product within the ZF Group.
in all areas, improve customer satisfaction, encourage and sup-
port continuous improvement processes, enhance employee
                                                                  Important Deadlines
motivation, stimulate an exchange of experience within the
ZF Group and generally learn from one another.                    June, 11th 2008
                                                                  • Application form to be sent to your respective TQM coordi-
Participation criteria:                                             nator (ZF Padova : isaia.bettella@zf.com , ZF Marine Arco:
                                                                    nicola.carloni@zf.com, ZF Marine GmbH = wolf-dieter.
• Projects should target leadership improvement, strategy,
  people motivation, partnerships & resources, processes,
  customer satisfaction, financial results, environmental pro-    July, 11th 2008
  tection, information protection or product innovation.          • Project to be submitted in PowerPoint format (English lan-
• Improvements must be measurable.                                  guage) to your TQM coordinator.

• Projects must be either completed, showing successful           July, 18th 2008
  results, or in a deployment / implementation phase which        • Presentation and prize-giving ceremony for the ZF Marine
  shows potential for successful results.                           TQM contest held at ZF Marine Arco, Italy.
• Projects should not be older than one year.                     September, 5-7th 2008
• Details of projects should not be confidential at the time of   • Prize-giving ceremony for the ZF corporate TQM Contest
  the contest.                                                      held at ZF Friedrichshafen AG, Germany.
• Project teams should comprise three to seven members (in-       • Winners’ Weekend at Munich (BMW World, Go-Cart racing,
  cluding the Project Leader).                                      Olympic Park) and visit to Castle “Neu Schwanstein”

12   news   Marine Propulsion Systems
 News from Market Segments


SmartCommand – Continued Success
SmartCommand has developed into a controls platform which is easily interfaced                              the CAN-bus as well as NMEA 2000
with all ZF Marine products – transmissions, surface drives, POD drives and                                 protocol, both of which are becoming
steer-by-wire systems – as well as many non-ZF Marine products.                                             ubiquitous in the marine industry.

Naturally, SmartCommand can also interface with exciting new products which                                 We’re proud to have such a versatile
are currently being developed by design teams in various ZF Marine locations. In                            control system and would like to thank
fact, due to its inherent flexibility, the system has become a basic reference point                        all involved (particularly those at ZF
for future development in general. This development is of paramount importance                              Marine Electronics at Mukilteo) for
to keep in step with customer needs - engine OEMs, boat builders and boat own-                              their dedicated work!
ers. This flexibility is also derived from the possibility to exchange data using

First Meeting of “European Distribution Center”
An official Center of Competence for ZF Marine’s shaftline business within Europe,                          petence and high quality components
mainly targeting Pleasure Craft vessels up to 24 meters length, has been created at                         for charter boats, work boats, patrol
ZF Italia. The European Distribution Center (EDC) held its first meeting at the ZF                          and coast guard applications for vessels
Italia offices, located in Assago, near Milan, on 15th – 16th April. This meeting was                       greater than 24 m overall length.
convened to address training and information exchange on all aspects of the new
shaftline components which are now marketed by the ZF Marine group.                                         The meeting provided training regarding
                                                                                                            technical and sales aspects of propul-
The EDC project, which has been in operation since May this year, relies on close                           sion systems, and there were also lively
cooperation between ZF Marine Arco (responsible for Sales and Product Develop-                              discussions concerning the actual and
ment) and ZF Italia, (responsible for Logistics, Distribution and Application Support                       future market situation in Europe. The
throughout Europe). In recent years, ZF Italia has gained considerable experience                           event was a great success and established
with propulsions systems and is recognized as a preferred supplier by leading boat                          a foundation for the future collaboration
builders such as Dalla Pietà, Aicon Yachts and Stratos.                                                     between the EDC and ZF Marine’s SSO
                                                                                                            (Sales and Service Organisation) repre-
The participants at the meeting were introduced to the new products related to com-                         sentatives, with the aim of providing ex-
plete shaftline systems, which the ZF Marine Group, as a single-source supplier, is                         cellence and professional support to boat
now offering to customers. These components include propeller shafts, struts, shaft                         builders in their respective regions.
seals/stuffing boxes and rudders, primarily intended for high-quality motor yachts.
However, the EDC can offer custom-built solutions, combining expert project com-

EDC meeting participants (from left to right): J. Torre (ZF Espana), P. Di Muro (ZF Italia, EDC), M. Manzini (ZF Italia), A. Martinez (ZF Espana),
P. Nelmes (ZF Great Britain), R. Gamere (ZF France), K.E. Pragsten (KGK Sweden), D. Morgan (ZF Great Britain)
 News from Market Segments


The 5th Ferretti “Convergence 2008”
From 26th – 29th February, the Ferretti Group again organized     covered the day-to-day handling of boats, routine maintenance,
an important information exchange in Rome, for the benefit        technical explanations about machinery and instrumentation
of captains from Ferretti boats up to 24 meters as well as        as well as legal and medical issues. Naturally, there was practi-
maxi-yachts. Nearly 200 commanders came from all over the         cal training on-board and all suppliers were pleased to receive
world – Europe, USA, Middle-East, Russia, Ukraine, Australia      constructive feedback from the captains.
and New Zealand – to attend training seminars, take part in
workshops and hear presentations from many major suppliers.       The event included a sumptuous Gala Dinner at the Palazzo
These included representatives from MTU (main sponsor),           Taverna in Rome, attended by the CEO of the Ferretti Group, Vi-
Caterpillar, SAIM Marine and, of course, ZF Marine.               cenzo Cannatelli and presidents of other Ferretti companies.

This was the first time the conferences “Master Convergence”      In appreciation, ing.Andrea Frabetti, Vice President Fer-
(for captains of small to medium yachts) and “Convergence         retti SpA – Engineering AYT (Advanced Yacht Technology)
Navi” (for captains of megayachts) were combined into a single,   remarked: “Your participation in Convergence 2008 as Technol-
4-day event. The longer duration permitted more technical         ogy Partners made this event a great success: THANK YOU!
content and the location in Rome was ideal, linking the Fer-
retti Group to its Italian cultural heritage. There were lively   Your lectures and willingness to go in details and to have
discussions, especially with the Service Managers and other       individual meetings have been appreciated by all our guest
technical staff from the various companies.                       captains. We are happy that you found the dedicated booths
                                                                  fruitful and useful.
ZF Marine Electronics’ International Sales Manager, Enrico
Crepaldi, presented our new SteerCommand system and An-           We are extremely satisfied with the outcome of the event and
drea Chiecchi presented the SeaRex surface drive. There was       we want to especially thank you for believing in this initiative,
a great deal of interest in both products and many questions      for having supported us in our efforts and for your collaboration
from the captains. Each company had their own dedicated           in addressing issues during lectures which raised the interest
booth and the ZF corner was extremely popular! Discussions        of all participants”.

Enrico Crepaldi introduces the SteerCommand System                Meeting at ZF Marine corner with captains

14   news   Marine Propulsion Systems
Joystick Controls

ZF Marine Electronics in Mukilteo, Washington has recently          good as a boat with a POD drive system! A second prototype
developed a new proportional joystick control system for ves-       system, expected to be the final version approved for series
sels with traditional shaftline installations, i.e. boats already   production, will installed on another pleasure boat in the next
fitted with conventional propulsion systems (e.g. inboard           few months.
systems). With joystick control, the boat can be maneuvered
as though it were fitted with POD drives – but no redesign of       The joystick control has subsequently installed by another
the hull is necessary!                                              two boat-builders who were both impressed by the improved
                                                                    handling. They said maneuvering a vessel has never been
The latest prototype installation was on the 85 foot motor          simpler, especially during docking, and pronounced the sys-
yacht, “Mystica” based at Lake Union in downtown Seattle.           tem “excellent”!
The design team from Mukilteo has been working hand in
hand with the yacht’s captain, refining software programs to        Four major boat builders have now expressed interest and have
produce a most smoothly operating joystick control system.          allocated vessels for testing. One builder has already agreed, in
Vittorio Rasera, General Manager from ZF Marine Arco, Italy,        principle, to be the “launch customer” for this new technology.
visited the Miami International Boat Show then went to Seattle      Mass production is expected to start in autumn 2008 and we
to test the new system. After taking control and thoroughly         expect the joystick control system to create a lot of excitement
putting the boat through its paces, he said the handling is as      at this year’s Fort Lauderdale International Boat Show.


ZF 9000 Series - Application in China
                                                                    A new Chinese rescue boat named “NAN HAI JIU 101#” has
                                                                    recently been put into service in the Guangzhou region.

                                                                    This multifunctional vessel, powered by twin 7,000 kW Wärtsilä
                                                                    engines, is the first application in China for the new ZF 9000
                                                                    series designed and manufactured by ZF Marine GmbH, Ger-
                                                                    many. The two, specially modified ZF 9060NR2 transmissions
                                                                    are speed-increasing, two-shaft versions (ratio 2.957) and drive
                                                                    fire pumps, each transmitting a torque of 17,430 Nm.

                                                                    In the near future, another two vessels are intended to be built
                                                                    for operation in the Shanghai and Yantai regions.

                                             NAN HAI JIU 101
News from Market Segments


SWATH Vessel With
ZF 9350 NCB Transmissions
In response to a tender issued by the „Bundesanstalt für Wasserbau“ for two pilot         The ships will be delivered in the 2nd
station vessels for operation in the North Sea, the shipyard Aberking & Rasmussen         and 3rd quarters of 2009.
succeeded in winning the order.

A & R is a leading shipbuilder renowned for specialized ships and in this case, the
winning design proved to be a SWATH (Small Waterplane Area Twin Hull) vessel. This
type of vessel, depending on the size, has especially good sea-keeping characteristics
in medium to heavy seas and affords a stable, seaworthy platform. Pilot station ves-
sels serve as base ships for the pilots and for the North Sea, are typically located at
the mouths of the rivers Elbe and Weser. From these ships, the pilots can travel to
and from arriving/departing ships, often using smaller SWATH-type vessels.

The pilot station ships, fully classified according to Germanischer Lloyd rules, are
approximately 55m overall length with 25m beam and operate together with 25 meter
pilot boats. They have Diesel-Electric propulsion systems, whereby four generating
sets supply power to twin 1,200 kW motors running at 1,200 rpm and driving fixed-
pitch propellers via reduction transmissions. This propulsion system permits the
electric motors to be ideally positioned low down in each of the narrow hulls and
provides ample space for maintenance.

The transmissions, variants of ZF Marine’s new 9000 series, are designated ZF 9350
NCB. This special model has the input shaft vertically offset below the output shaft
and is without disengaging clutch. The Engineering departments at ZF Marine GmbH
were tasked also with incorporating an integrated propeller shaft brake, as well as
special, hard-elastic mountings. Naturally, the configuration with input below out-
put required various changes to the monitoring, lubrication and hydraulic systems
(electric-driven oil pump installed beneath the transmission).                            ZF 9350 NCB

News From The World

New Boats From Bénéteau
The CNB BENETEAU Group "BENETEAU Fishing Department" has extended their                   boats fitted with ZF 85 A gearboxes were
range of RORCAL series fishing boats. Boats of 9 to 12 meter length are now avail-        delivered during the past 8 months. Natu-
able, all fitted with ZF Marine gearboxes.                                                rally, all gearboxes have trolling valves
                                                                                          for slow speed cruising.
Eleven “RORCAL 120” boats are already in service, fitted with ZF 350 A gearboxes,         We wish the owners safe fishing and
PTOs and ZF Marine Electronics control systems and another five “RORCAL 90”               large catches!
 News from Market Segments


New PTO and Integrated Shaft Brake
for ZF W17000
One of ZF Marine’s basic strategies is to   as well as a secondary “PTO 4” driven by the intermediate shaft (live or clutchable)
build up an extensive portfolio and offer   for powers up to 972 kW. The latter has been developed for use also as a PTI (Power
customers the widest range of products      Take In) for use with auxiliary propulsion electric motor (emergency “Get-Home”
related to marine propulsion systems, for   device). Alternatively, it can be used for power transmission to the CPP actuating
all types of vessels. In the Commercial     pump. Finally, to complete the PTO family for the ZF W17000, a “PTO 1” is available
Craft sector, we have recently introduced   as a live PTO running at engine speed, with a maximum capacity of 459 kW.
the new gearbox model ZF W17000, de-
signed for reversing and non-reversing      The integrated shaft brake helps to make the vessel more maneuverable, reducing
applications in a power range from 2,300    the response time during ahead/astern movements.
to 3,000 kW. For this gearbox, we can
now offer new PTOs (Power Take Offs)        ZF W17000 gearbox series will soon be extended with the introduction of the ZF
and an integrated shaft brake. Such ac-     W17100 and ZF W17200 models, with a higher ratio range (up to 7.2:1).
cessories are often required for applica-
tion in small container ships and inland
waterway vessels.

PTOs are important features which
enable power for hydraulic pumps or
winches to be conveniently taken direct-
ly from the main engine, via the gearbox.
Over the years, ZF Marine has developed
many PTOs for various gearbox models,
powers, ratios and configurations. For
the ZF W17000, a primary, top-mounted
“PTO 2” is now available for transmit-
ting powers of 1,152 kW (live PTO),
alternatively 972 kW (clutchable PTO),      ZF W17000 with PTO and Integrated Shaft Brake   Integrated Shaft Brake

News From The World
News From The World

ZF Marine Gears up for Second World Record
Attempt by Earthrace
Earthrace is an incredible 78ft wave-         last year. At that time, technicians         San Diego, USA - Hawaii - Majuro, Mar-
piercing trimaran powerboat that runs         from ZF Marine LLC were requested to         shall Islands - Koror, Palau - Singapore
as a carbon neutral project, exclusively      come to San Diego to carry out crucial       - Cochin, India - Salalah, Oman - Suez
on 100% biodiesel. The boat started its       maintenance. Pete Bethune, skipper of        Canal - Sagunto, Spain
second attempt to break the round the         Earthrace, was very appreciative, saying
world speed record in mid April, leaving      “the ZF guys did a brilliant job, working    You can follow Earthrace as she travels
from Sagunto in Spain, after undergo-         so well in difficult conditions”.            around the globe in real time by going to
ing a full pre-record refit at the Vulkan                                                  www.earthrace.net and clicking on the
Shipyard.                                     This first attempt was called off because    ‘Where is Earthrace’ globe.
                                              of structural damage sustained by Earth-
Earthrace is powered by two new 540           race while battling three severe weather
HP Cummins Mercruiser engines driv-           systems in three weeks - a monsoon off
ing through ZF 305 A transmissions,           the southern coast of India; 50 knot head
supplied to the team by ZF Padova Spa,        winds travelling up the Red Sea; and fi-
Italy. The company also supplied the          nally a vicious storm en route from Port
original gearboxes for the first attempt      Said, Egypt towards Malaga, Spain.
to break the record by Earthrace which
took place early in 2007.
                                              About Earthrace
Skipper of Earthrace, Pete Bethune, said:     The non-profit project is run as a “carbon
“It’s fantastic that ZF Marine are continu-   neutral” enterprise, making it one of the
ing their relationship with our project.      world’s most environmentally friendly
We know that their products are the best      powerboats. The crew aim to secure           Earthrace

in the world, and with their gearboxes        the world speed record while creating
on board, together with a global service      greater awareness for biofuel from sus-
network, we know we will have the best        tainable sources which can partly com-
chance of breaking the world record. We       pensate for damage to the environment
are determined to do it this time – we        caused by fossil fuels, and to promote the
owe it to companies like ZF Marine who        need for everyone to live using renew-
have been so supportive.”                     able resources. The full record route is
                                              as follows:
From her launch back in New Zealand,          Sagunto, Spain - Azores - Puerto Rico
Earthrace has travelled around 70,000         - Panama Canal - Manzanillo, Mexico -        ZF 305 A

nautical miles, visited 87 different ma-
rinas, and had more than 80,000 people
on board.
                                              British Tug for Caspian Sea
The current world record is held by
Britain’s ‘Cable and Wireless Adventurer’     ZF Great Britain, report they have re-       CYMYRAN”, 880 tonnes displacement,
who took the record in a time of 75 days      ceived an interesting order for three        35 m overall length, 11.5 m beam and
ten years ago in 1998. Since then, this       ZF 7661 gearboxes from Hepworth              50 tonnes bollard pull, built to Lloyds
record has been challenged five times,        Shipyard Ltd. in Hull. The gearboxes are     Register ice classification1B. Powered
including the first Earthrace attempt         to be installed in a tug named “AFON         by three Cummins KTA 50 engines (each

18   news   Marine Propulsion Systems
News From The World

HISWA in Amsterdam

HISWA, standing for the “Netherlands          engine power. The cooperation between         the Isle of Wight, and docking in harbors
Association of Enterprises in Water           VSTEP and ZF Marine benefited both            such as Southampton, Marseille and San
Recreation”, (commonly known as the           companies by advertising and enhanc-          Francisco.
Amsterdam Boat Show) was held from            ing their expertise in ship simulation
4th-9th March at the RAI Exhibition           together with our products.                   In appreciation of our assistance,
Centre. Although ZF Marine does not                                                         VSTEP Chief Technical Officer, Pjotr
normally participate in this show, we pro-    VSTEP is a leading developer of “Serious      van Schothorst said: “Thanks again for
vided control levers to enrich the “Virtual   Games” and uses real-time 3D technol-         lending us your great engine controls.
Experience Corner” built by the software      ogy to develop virtual training appli-        The HISWA was a resounding success,
company “VSTEP” at the request of the         cations for fire-fighters, train drivers,     with lots of visitors on all days. We look
show organizer, targeting in particular       safety officers, and marine personnel.        forward to a continuing dialogue with ZF
young people. In fact, this year, those       Since its founding in 2002, VSTEP has         Marine”. For more information, please
under 17 years of age had free admission,     completed over 35 projects for clients        visit www.vstep.nl
the aim being to acquaint young people        such as the Royal Dutch Navy, the Port
with the event and all the different kinds    of Rotterdam, Falck/Nutec, Shell and
of watersports. For this purpose, the         the Dutch Railways. Based on a wealth
organizers cooperated with the Dutch          of experience involving virtual disaster
Water Sports Association and the CWO          management, nautical and fire-fighting
(the Central Commission for Watersports       training, VSTEP has recently expanded
Courses) to provide an attractive program     their activities to create complex, enter-
of events for young people in and around      taining games for home PC users.
the Water Fun Zone. At the “Virtual Ex-
perience Corner” a different control lever    The “Ship Simulator 2008” is a revolu-
from ZF Marine’s range was installed on       tionary game which puts players at the
each of the five virtual “helms”, promot-     helm of a wide variety of ships. Players
ing the large choice of products we have      need to perform a multitude of tasks, all
available. These included the models          set within a stunning, 3D environment.
463, 460, MC2000 and MC4200.                  They can take control of cargo ships,
                                              ferries, speedboats, motor yachts, water
This was the first time VSTEP had real        taxis or even the mighty Titanic! The sail-
control heads for their simulator (instead    ing scenarios are as varied as the ships,
of a computer mouse) for controlling          including maneuvering in the Solent off
                                                                                             Virtual Experience Corner at HISWA

1700 hp) the maximum speed will be            istered in Aktau, will be renamed “AK
12 knots. This is the fifth vessel built      BURKUT”. She will be owned/operated
for Holyhead Towing with Cummins/             by CASPIISKY BUKSIER and will work
ZF propulsion units and a further two         in the Caspian Sea.
vessels are on order. The tug, to be reg-

                                                                                             VSTEP Simulator with ZF Control Head
News From The World

ZF Marine in Croatia
ITEC d.o.o.,founded by Tomi Malpera in July 2003, is the of-          and nautical fairs in this region – e.g. the Croatia Boat Show in
ficial dealer for ZF Marine products in Croatia, Montenegro,          Split, the Zagreb Sport and Nautical Fair, Biograd Boat Show,
Serbia, Bosnia and Macedonia. As we have no official dealers          “Cro-Fish” fair in Umag etc.
in Rumania and Bulgaria, Itec d.o.o. also assists ZF Marine in
these countries, as required. Headquarters are in Karlovac,           It was the fifth time ITEC participated in the Zagreb show in
which is inland, but years ago, this used to be the biggest port in   February this year, where several gearboxes from ZF Marine
Croatia. In fact, Karlovac is known locally as the “Four-Rivers-      Arco were shown, as well as surface drives and propellers. The
Town” because it is located near four rivers – the Kupa, Korana,      exhibition was well attended, with many decision-making visi-
Dobra and Mreznica. It became very important when goods               tors and the attendance figures were again higher than previous
were transported via the river Kupa which directly connects to        years. Several local boat-builders were especially interested in
the Sava, a tributary of the Danube. The historical city emblem       the MiniRex® surface drive. The stand personnel were busy
still shows two anchors and two mermaids.                             throughout the exhibition, discussing projects with existing and
                                                                      potential customers and generally exchanging information. All
                                                                      in all, it was a successful event in a relaxed, Mediterranean
                                                                      spirit and we look forward to a prosperous business year!

The main business partners which ITEC deals with are repre-
sentatives of Cummins (ABP Diesel) Caterpillar (Contek) Isuzu
(Motortech Consulting) and some other Croatian firms such as
AMEC Rijeka, as well as several Croatian shipyards and small
boat builders. Business is developing gradually and we are
gaining ground against the competition. Our main advantages
are the world-wide recognition of ZF quality, reliability and
the extensive product portfolio. With so many new products
coming on the market, we are confident business will increase
rapidly in the coming years.

ITEC has a staff of five and a network of authorized mechanics
to service products throughout the Adriatic coast, from Umag to
Dubrovnik and supplies spare parts for all ZF Marine products
(mainly gearboxes). ITEC also attends the major boat shows
                                                                      ITEC booth at " Zagreb Sport and Nautical Fair"

Eurodiesel Move to New Offices
Our Greek representative, Eurodiesel K. & E. Malerdos Co. has         and contact details can be seen in the Dealers List on our web
moved to new offices in Piraeus.                                      site.

Evagelos Malerdos reports that since 1st March they have a            The Malerdos brothers look forward to expanding business and
four-story building with 700 sq. m. Products are stocked on           continuing the good cooperation with ZF Marine!
two floors and there is a fully equipped workshop. Address
News From The World

Another Passenger Vessel built in Tasmania
In November 2007, World Heritage Cruises, Australia, took              couplings. ZF FPS propellers were also selected, as a result of
delivery of an exceptional new passenger vessel designed by            ZF Marine’s participation in the Sanctuary Cove Boat Show in
Incat Crowther and built by Richardson Devine Marine – the             2007 and follow-up discussions between Guy Grining (World
first vessel to be built at their new, purpose-designed yard at        Heritage Cruises) and ZF Australia Pacific Pty Ltd. The propel-
Prince of Wales Bay, Hobart, Tasmania.                                 lers are nibral, 5-bladed, NACA blade profile, Class S, and the
                                                                       propulsion system drives the vessels at 33 knots maximum or
The vessel, named “Eagle”, is truly outstanding, both in appear-       28 knots cruise speed.
ance and size. In fact, she is one of the largest day-cruise vessels
to operate in Australian waters. She began operation cruising          Sometime early in 2009 “Eagle” will participate in a world re-
the magnificent Macquarie Harbor and the Gordon River in               cord attempt in water skiing, the target being to tow 121 water
Tasmania (in UNESCO’s “World Heritage” list), undertaking              skiers for a distance of 1 nautical mile, according to the rules
two cruises daily with a payload of up to 450 passengers.              and regulations of the Guinness Book of Records.

World Heritage Cruises chose twin MTU 8V 4000 M70 engines,             ZF Marine wishes World Heritage Cruises success in this at-
each developing 1,156 kW at 2,000 rpm coupled to free-stand-           tempt and look forward to publishing the event next year with
ing ZF 4540 gearboxes (ratio 3.04:1) with Geislinger flexible          exciting photos of the water skiers in action!

Back on a Winning Streak
The yacht “FREEWHEELER”, with her owner David Wheeler at
the helm, is back on a winning streak! His 33 foot classic “Cape
Carib” sailboat, with a full keel and displacement of 5.9 tons,
has a Kubota 3-cylinder 850 cc propulsion engine fitted with
an unknown gearbox, which recently failed. ZF Philippines
installed a ZF 5M and carried out some adaptations.

David, a former consultant to the World Health Organization,
but now retired, has won many races and was named the Ma-
nila Yacht Club’s “Sailor of the Year” in 1996. We wish David
many more years successful racing!

                                                                       From left: David Wheeler (Owner/Skipper of “Freewheeler”) ,
                                                                       Mars E. Ochoa (ZF Philippines Managing Director ), Gil Esquivel (Mechanic)

Eurodiesel warehouse                                                   Eurodiesel workshop
     News From The World

     New Dealer in Peru
     Five years ago, Pedro González-Orbegoso was appointed the ZF Marine Delegate/             ‚ AMAZON BASIN: Tugs, motorized
     Consultant for the Peruvian market. Following a reorganization process in South            barges and passenger vessels
     America, in January 2007 PGO International S.A.C. was established as an indepen-
                                                                                               ‚ MILITARY / NAVY: Corvettes, patrol
     dent ZF Marine dealer to be closer to end-users by holding a local stock of transmis-
                                                                                                boats and tugs
     sions. Back in 2003, ZF Marine’s market share was relatively small, but today, thanks
     to PGO, we have become the market leader! Customers are mainly OEM engine                 Our mission is to promote the ZF Ma-
     dealers - Caterpillar, Cummins, John Deere, Volvo Penta and MWM. This market              rine’s world class brand of quality prod-
     supremacy is evident both at the Pacific coast and at the main Amazon basin ports,        ucts and to make the name synonymous
     Iquitos and Pucallpa.                                                                     with professionalism and innovation in
                                                                                               the Peruvian marine market. We will also
     The Peruvian market can be categorized in three main sectors:                             provide technical advice to private and
     ‚ PACIFIC COAST: Fishing boats (Industrial, semi-industrial and artisan), tugs, service   government organizations and empha-
       boats and some pleasure craft                                                           size protection of the environment.

                                                                                               In November 2007, PGO International
                                                                                               S.A.C. participated in “EXPO PESCA
                                                                                               PERU 2007”, a very important trade show
                                                                                               in Lima. We presented an assortment of
                                                                                               popular transmissions and the response
                                                                                               far exceeded our expectations. The new
                                                                                               ZF Marine market distribution structure
                                                                                               has been very successful in Peru, where
                                                                                               the economy is very prosperous with an
                                                                                               annual growth of 8%.

PGO International booth at "Expo Pesca"   From left: PGO guest, Pedro González-Orbegoso Sr.,
                                          (General Manager) and Pedro González-Orbegoso Jr.,

     ZF Marine Rugby - The 2008 New Zealand Tour

     The third edition of this international rugby tournament (prior editions took place        ing (and beverage-sampling!) experiences
     at Limerick and Buenos Aires) will be the greatest tour for ZF Arquitectura Classics       and perhaps a final game against a local
     so far. It is also the first chance for an Arquitectura team – after legendary tours to    rugby team, yet to be confirmed.
     Europe, South Africa and South America - to show off our game in the true antipodae.
     Starting September 14th, at the Christchurch 2008 World Vintage Rugby Carnival,            ZF employees around the world, with
     six days of sport and entertainment await us and our sponsors in the southern region       reasonable rugby experience, are invited
     of Canterbury, including three full days of rugby and three days for tourism and           to join us in New Zealand for this unique
     relaxation. After this showdown, we will travel around New Zealand for another             experience. If interested, please contact
     week, ending up in Auckland on the 27th. This will include some team-building sail-        us at zfclassics@bauman.com.es
News From The World

Megayachts from Brazil
MCP YACHTS, established 28 years ago,         – important for MCP because most of their yachts are exported.
specializes in the design and construc-
tion of aluminum megayachts, and is           The modern boatbuilding facilities currently covering 3,000 sq. m. will soon be ex-
the main builder of this type of vessel in    panded by an additional 10,000 sq. m. when a second production plant is finished.
South America. The shipyard is located        This new yard is at the Marine Industrial Park of Guarujá, known locally as CING,
in the harbor area of Santos, not far         and will double MCP’s capacity.
from São Paulo, which is a major sup-
plier of goods and services to the whole      This development is MCP’s reply to an increasing market demand, nationally and
continent.                                    internationally, for luxurious vessels with a large sailing range. The company’s stra-
                                              tegic plan is to maintain its position as the most advanced and sophisticated builder
MCP yachts are only fitted out with the       of pleasure craft in South America, achieved by expanding and modernizing the
highest quality equipment to ensure           production line. MCP is also an ideal stopover for the maintenance and repair of
best performance and reliability. The         megayachts which cruise the Brazilian coast.
company has long-term agreements
with many world-renowned suppliers            At the second plant, which is scheduled for inauguration in January 2009, it is
and major players in the marine market,       planned to produce six vessels per year. Additionally, the new plant will be able to
such as ZF Marine. The 100 foot yachts        accommodate new projects for vessels up to 140 ft length and 150 tons displacement.
are equipped with ZF 3050V gearboxes          Currently, the production is limited to vessels up to 115 ft.
produced in Germany by ZF Marine
GmbH and adapted by ZF do Brazil.             At present, all the sheds at MCP are operating at full capacity. In the Structure shed,
The 76 foot yachts are equipped with ZF       there are two “Classic 76” and in the Finishing shed there is the first “100 Europa”
325A gearboxes from ZF Padova. Accord-        in final build phase (due to be launched in June). Among other features, the “Europa
ing to engineer Abe Lincon Rosemberg,         100” has five state rooms, can beach on the water (condition where the stern door-
MCP only deals with companies who             platform is open), has a Jacuzzi pool, extended fly deck, and retractable solar roof.
are recognized and established in the
market. He confirms that, in the case         MCP Yachts is very selective in choosing only the best brokerage representation over-
of the ZF 3050V gearboxes, they are so        seas. In the USA, Canada and Mexico, Merrill Stevens, a company founded in 1886
reliable they can be fitted and then safely   and based in Florida, controls the oldest boatyard in the US and gives MCP clients
forgotten by the final customer! Another      first class support. In Europe, excellent service is given by MORAVIA in Montecarlo,
advantage is that ZF Marine has an excel-     with branches in Monaco, Dubai, Tokyo, Viareggio and Milan.
lent after-sales network around the globe
Driveline and Chassis Technology

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