Trelleborg divests Norwegian offshore oil & gas operation
Swedish engineered polymer solutions firm Trelleborg has reduced its assets in the offshore oil & gas segment after divesting its offshore operation in Norway. In the financial statements the operation is recognized among Assets held for sale. It had annual sales of approximately SEK310 million in 2020. The transaction does not have any material impact on the group’s net profit. The buyer is the current management together with a local partner.
Related: Trelleborg divests UK offshore oil & gas operation
The operation mainly develops and manufactures rubber-based fire protection solutions and thermal insulation used in offshore oil & gas extraction.
“When a strategic review was conducted of the business unit at the end of 2019 it became clear that a divestment was the best alternative for us and for this oil & gas operation. Today, it is therefore satisfying to communicate the transaction. At the same time, it must be emphasized that the other parts of the Group that develop, manufacture and sell products and solutions for the oil & gas industry, are in niches where we want to continue to maintain a presence and where we hold leading positions. This mainly pertains to safety-critical seals, hose systems, bearings solutions and various safety solutions for LNG,” says Peter Nilsson, President and CEO of Trelleborg.
The transaction is expected to be finalised in the second quarter of 2021.
This is the second recent divestment of oil and gas businesses by Trelleborg. Early in March it offloaded its offshore operation in Skelmersdale, England. Like the sale of the Norwegian oil and gas business, Trelleborg sold its UK offshore business to people in senior positions within its UK company.
At that time Trelleborg said the divestment was part of its strategy to focus on selected market segments.
