Wärtsilä to sell LNG tank control system division to Svanehøj
Finnish technology group Wärtsilä has decided to sell Wärtsilä Tank Control Systems (TCS) business to Danish marine pump manufacturer Svanehøj.
As part of the acquisition of Wärtsilä TCS, a new independent business for land-based activities will be established. The company will be based in Calais, France, from where Wärtsilä TCS currently produces measurement systems for land-based liquefied natural gas (LNG) systems.
The division became part of Wärtsilä as a result of the acquisition of Total Automation in 2006. It focuses on the design and service of high-end measurement systems for gas tanks on LNG ships, offshore storage, and land-based LNG terminals.
What is more, the division acts as a supplier of safety products and associated systems and solutions for LPG land-based storage and underground cavern storage.
The closing of the contracts is expected to take place in the fourth quarter of 2021 if all the conditions are met.
“With the divestment, Tank Control Systems will have access to Svanehøj’s resources and service network, complementing the current installed base and future direction of our safety and gauging solutions,“ said Chris Mais, General Manager of Tank Control Systems.
Danish gas pump firm Svanehøj is already a provider of cargo system service for LPG vessels, and the intention is to use the acquisition to achieve a similar position within the larger LNG ship segment.
After the acquisition is completed, the company will expand its services to 500 LNG vessels.
“The acquisition of Wärtsilä Tank Control Systems is an expression of our desire to make Svanehøj a … specialist in producing and servicing equipment for handling all types of liquefied gas – natural gas, biogas and not least the Power-to-X-based fuel of the future,” stated CEO of Svanehøj, Søren K. Nielsen.
“Gas is one of the biggest driving forces in the green transition. Liquefied natural gasses such as LNG and LPG are already cleaner alternatives to oil and coal today. And with Power-to-X, we will see green electricity from solar power and wind converted into climate-friendly fuel for aircraft, ships, lorries and industry in a few years.”
The acquisition of Wärtsilä TCS is Svanehøj’s second in less than eight months. In November last year, Svanehøj took over the service specialist FORCE Technology Marine Equipment Service.
To strengthen its LNG market foothold, the firm also appointed Hirohide Gohda as director and head of office in Kobe, Japan. Gohda has extensive experience with LNG projects, which he has gained through a long career at Mitsubishi Corporation.