IHC Merwde remains the global market leader in the construction of customised dredging equipment and is continuing to boost its market share in offshore construction vessels and equipment, which now accounts for 31% of revenue.

Both markets developed well last year, resulting in the sale of nine ships for dredging and offshore plus another 22 dredgers from IHC's standard Beaver series. In China the company sold ten large standard cutter suction dredgers which were built at local partner shipyards. The Group's Technology & services companies also achieved record sales.

Engineering and production capacity was scaled up considerably last year but in order to serve ever expanding markets, the company must take the process farther. Limited opportunities in the Netherlands means capacity must be found in other countries and IHC has invested in a major expansion of its production site at Guangzhou in China. The company spent 3% of revenue on product development last year, a trend which looks set to continue.

IHC Merwede is aiming to extend its Technology & Services position in both the dredging and offshore markets through targeted acquisitions. To this end it purchased hydraulic cylinder manufacturer VREMAC last year and British specialist equipment supplier for the offshore construction market, The Engineering Business, earlier this year.

The acquisition process continued last month when IHC Merwede gained 100% shares of Dorset UK based Sea Steel Ltd, which develops innovative subsea piling solutions for the offshore industries. The company will now operate as IHC Sea Steel. Synergies with IHN Hydrohammer and IHC Handling Systems can now deliver a complete pile driving package for offshore operations worldwide.