The core business of the holding is Dredging. Environmental and Marine Engineering (DEME).

Our owners are Ackermans & van Haaren, which was founded as early as 1852, CFE, the French financial group, and GIMV, the Belgium state organization, hi other words 3% of our company shares are in hands of Belgium government.

The head company of DEME group is Dredging International N.V.

Some facts from our history - Dredging International was established in 1974 by the concentration of the dredging division of Ackermans & van Haaren and Societe Generate de Dragage. As a result: a company that has over 100 years of experience and is to be founded at top level in the international dredging business was created. The company is specialised in the construction and development of harbours, artificial islands, estuarial dams, canals and inland waterways, dike construction and reinforcement, beach replenishment and coastal protection, supply of dredged aggregates and salvage activities.

In 1991 the holding company Dredging. Environmental & Marine Engineering (DEME) was established to pool resources together.

The company's capabilities have further expanded into such areas as:
• dredging and construction of ports:
• offshore pipeline trenching and backfilling
• underwater rock drilling and blasting
• soil compaction using explosives
• directional drilling for pipeline crossings
• soil investigation in marine conditions
• landfall construction
• quay wall renovation
• soft soil improvement
• environmental techniques such as in- and ex-situ cleaning of contaminated silt and soils, waste management- construction of slope and bottom protection by means of geotextiles, HDPE layers, stone revetments and stone asphalt revetment works, etc.

The turnover of the last 4 years was following:
• 2000-687 mln. Euro,
• 2001-744 mln. Euro,
• 2002 - 677 mln. Euro,
• 2003 - 720 mln. Euro.

Although the decrease of the turnover in 2002, the company managed to take over the negative tendency, which was rather typical for all European economy of this year, and to reach almost the same absolute numbers in 2003. This year expected turnover is higher than the last and the market share of the company will reach 25%.

DEME and Dredging International has adopted a marketing strategy based on cooperation, on finding shared goals with clients, main and subcontractors or consortium members. Though Dredging International's roots are 100 % Belgian its location is truly international.

Dredging International has subsidiaries and branch offices in Germany, France. Italy, Spain, the U.K., Singapore, Malaysia, Hong Kong, Taiwan, the Philippines, Australia, India and Nigeria. The company, moreover, has representations and agencies in a large number of countries on all continents.
hi the middle of this year DEME group opened a representative office of one of the holding companies Decloedt in Saint-Petersburg.

After the signing of the contract between FGUP "PO"Sevmash" (Archangelsk) and Dredging International at the end of April 2004, the dredging and widening of Sevmash navigation canal in the frame of project of construction the Prirazlomnaya platform has started. Dredging International has used one of the most recent its vessels - Uilenspiegel, constructed 2002, with hopper capacity 13 700111З. The scope of executed works was 3.5 mln. m3.

The distance to the dumping area was about 17 km. Belgium specialists managed to reach 1,2 mln. m3 per month productivity of the vessels and completed all project in the month earlier than the plan.

In operation for over 100 years, Dredging International has been involved in major hydraulic infrastructure projects world-wide. Recent achievements include,
• the huge Jurong Tuas Reclamation Project in Singapore (extending The Singapore Island with a mere 3 %)
• deepening the Martin Garcia navigation channel, Uruguay
• the deepening works of the inner port entrance channels to the Liepaja Port. Latvia
• the dredging works of the Kakinada deep water port, India
• the Zeepipe installation works including the landfall in Zeebrugge, Belgium,
• the Europipe Development Project of Statoil in Germany,
• the major reclamation in the suburbs of Guayaquil, Ecuador,
• the construction of artificial islands at sea in Hong Kong and Macau.
• the extension of the airport of Sydney, Australia,

Another infrastructure project is soon to be completed in the port Antwerp is construction of the new dock. It will dramatically decrease the distance to the terminals, what expected to improve the harbour turnover in 1.5 times. Dredging International is the dredging part of project contractor.
The offshore activities of Dredging International are carried out through its wholly-owned subsidiary, TIDEWAY B.V., acting from Breda, The Netherlands.

The company owns the powerful Rollingstone, a D.P. fall pipe vessel with a capacity of 13,000 ton, able to perform accurate stone dumping to depths of over 1100 m. In 1998, the "Seahorse", another D.P. fall pipe vessel with loading capacity of 17,500 ton joined the fleet and further enhanced the company's capacity in stone placement works.

Projects executed by Tideway spread through Europe and the Far East.
• the construction of the 8-km pipeline crossing under the Western Scheldt. Belgium for The Intercoimector pipeline:
• Blue Stream Pipeline between Djubga and Samsun in the Black Sea for Gazprom;
• Stone placement works for stabilisation of the platforms and underwater pipes;
• the Gibraltar Gas Pipeline Crossing
• the Transmediterranean Pipeline Crossing between Tunisia and Italy. DEME Fleet
• Trailing hopper suction dredgers
• Cutter suction dredgers
• Backhoe dredgers/clamshells/ grabs / bucket dredgers
• Self-propelled hopper and transportation barges
• Fall pipe vessels
• Side stone dumping vessel
• Precision stone dumping pontoon
• Lifting vessels
• Self-elevating drilling platforms

INVESTMENTS IN RECENT YEARS
1997 ? 90.5 Mio
1998 ?81.5Mio
1999 ?115.1 Mio
2000 ? 66.0 Mio
2001 ? 48.3 Mio
2002 ? 88,6 Mio
2003 ? 84,3 Mio
7 YEARS TOTAL : ? Mio 575

Dredging International recent order is heavy-duty hard rock cutter suction dredger, with total installed power 38 000 HP and the dredging depth 35 m. The construction of this vessel is to be completed in the beginning of 2005.

DEME - Dredging International R&D department is constantly working on the testing and enhancing existing technology and developing new techniques. Among the last DEME developments are hydraulic hoppers SCOOP. SWEEP, BLANI and mechanic drags Ecodrag, Ecograb, Ecobackhoe.
The development of ecology friendly dredging methods is our company primary concern. We have implemented many unique ecological solutions in some special projects, for example a special filter "curtain" was used in reclamation of territory in Sydney. Australia.

hi the new countries DEME is strongly adhering to a multi-cultural approach and lasting co-operation with strong local contactors and partners. The Dredging International has the capacity and know-how to cope with turnkey or integrated solutions for such projects that require a multi-disciplinary approach.

Aside of all dredging activities is the veiy promising branch of hydro technical construction of offshore platform and underwater pipelines. The last world research showed the high efficiency of marine oil and gas transportation.

The presence of our company in this conference was determined by the serious recent changes in the market situation in the hydro construction and pipe construction branches of Russian economy. Being the contemporaries of the launch of a few large scale projects in North-West, North and Far East areas of RF we are confident in a strong demand of capital and regular dredging of harbors, canals and inland waterways of Russia.
DEME - Dredging International is willing to participate in tenders for all large hydro technical projects in Russia.

ARCTIC SHELF OIL AND GAS CONFERENCE 2004