Aker Solutions and Kvaerner to merge operations

Aker Solutions and Kvaerner to merge operations

Kvaerner and Aker Solutions plan to form a new company providing a more comprehensive service to the global energy industry

LYSAKER, Norway, July 17th, 2020 – Kvaerner and Aker Solutions plan to merge, forming a new company providing a more comprehensive service to the global energy industry. Although they will be combined based on the principle of equal parties, the new company will be Aker Solutions ASA, as published in the company´s website and in the Offshore Magazine.

Oil and gas customers are increasingly asking for solutions with reduced environmental footprint, the two companies said in their statements, while new customers are seeking renewable energy solutions.

Leif-Arne Langøy, current chairman of Kvaerner is also the proposed new chairman of Aker Solutions. Kjetel Digre, who will be CEO of Aker Solutions from Aug. 1, will lead the combined company.

The combined company will use industrial software, automation and digital technology provided by third parties to optimize output and pursue efficiencies in projects and operations.

It will also offer early front-end engagement, concept and system solutions for renewable energy and de-carbonization projects in offshore wind, carbon capture, use and storage, electrification and other emerging segments such as hydrogen.

The enlarged entity will in addition apply its global footprint in brownfield services and subsea to compete in the international renewables markets.

Fabrication will continue at the existing facilities owned by the two companies or in co-operation with partners worldwide. The combination of the two companies’ solutions and technologies provides a stronger offering of renewable energy solutions.

“The combined company will be a dedicated execution partner for delivery of complete projects for new energy production facilities, for example, oil and gas production platforms or subsea systems, or offshore wind power installations,” said Digre.

At the start of this year Aker Solutions had around 16,000 employees and Kvaerner around 2,800. Both have recently initiated reductions which should be completed before the merger takes effect.

The combined company will have about 15,000 personnel employees in more than 50 locations around the world, including roughly 8,000 in Norway, with operations in around 25 countries. This includes offices for concept development, engineering and project execution, fabrication yards and facilities for manufacturing of advanced equipment. Total 2019 revenues for the two companies last year were close to NOK38 billion ($4.09 billion).