TORM takes 75 pct stake in scrubber supplier

Danish tanker shipping company TORM has taken majority ownership in compatriot scrubber supplier ME Production (MEP).

Namely, TORM has bought a 75% ownership stake in the company from the present owner and founder, Jens Peter Faldt, who will retain the remaining 25% ownership. The transaction builds upon close cooperation between the two companies.

Over three years ago, the duo formed a JV partnership to produce scrubbers and other energy reduction equipment. The cooperation has enabled TORM to install scrubbers on more than 50 vessels developed and produced by MEP or the JV.

Aside from marine exhaust gas cleaning systems, ME Production also supplies marine Mekanord gearboxes and wind turbine gearbox services.

As disclosed, MEP will continue as an independent, stand-alone entity and will continue to serve its existing customer base. The current management and production team at MEP will continue without any changes, and Jens Peter Faldt will continue as CEO. MEP has 70 employees.

“With the new ownership structure with TORM, MEP will have a stronger foundation to support the development of the business. Our mission is still to create cleaner air by developing more green solutions and helping our customers to reduce their environmental footprint. That ambition is strengthened now that we are able to combine MEP’s capabilities in research and production of emission-saving equipment with TORM’s shipowning and ship management experience,” Faldt, MEP’s CEO, said.

“I am convinced that combining the experience and engineering resources at MEP with the operational excellence at TORM will help us in achieving our environmental targets, where we have decided to push fast forward to deliver a 40% reduction by 2025 and 45% by 2030 compared to 2008,” Jesper S. Jensen, Head of the Technical Division at TORM, said.

To remind, earlier this year TORM revealed it was planning to accelerate its decarbonization targets by achieving a 40 percent CO2 emission reduction by 2025 — five years ahead of the previous goal.

 The company plans to meet the objectives by continued focus on hull painting, maintenance, connected machinery, connected vessels, and optimizing vessel operations.

As for the long term, the company has the ambition to reach zero CO2 emissions from operating its fleet in 2050.

Follow Offshore Energy’s Green Marine on social media: