Kvaerner Expands Stord Capacity to Increase Competitiveness

Kvaerner has expanded the capacity of its facilities at Stord in the yard area, storage area and offices to increase competitiveness and position the company for future growth.

In addition, Kvaerner establishes its own inhouse capacity to supply insulation boxes, which often makes up a significant part of offshore or onshore processing plants.

These measures will contribute to more efficient work processes and reduced costs in future projects, Kvaerner said.

In total, the investments amount to around NOK 90 million. Kvaerner recently announced a growth strategy that will continue to expand the portfolio and focus on new market areas such as wind power and floating production units, in addition to the traditional market areas.

Acquiring Stord Industribygg Kvaerner’s specialized facilities at Stord will continue to be a power center for project execution. To gain access to more production and warehouse space, as well as office facilities, Kvaerner has purchased Selvaag Bolig’s stake in Stord Industribygg.

The acquisition makes Kvaerner the sole owner of the company which, through the subsidiary Stord Industribyggg, owns the office building at Bleikjehaugen, the camp area at Naustvågen and Kjøtteinståa with the associated buildings.

With this transaction, the yard adds an area of 123 000 m(2) and 10 000 m(2) of office space. The acquisition will be completed in the third quarter of 2019.

“Selvaag Bolig is pleased that Kvaerner now takes 100 percent ownership of Stord Industribygg Holding AS, as the business of this company is not within Selvaag Bolig’s core business, housing development and housing construction,” said Sverre Molvik, CFO of Selvaag Bolig.

“Kvaerner’s yard at Stord will play a key role in the company’s growth strategy. The yard has for decades developed methods and facilities for project execution, and a vast expertise that the company will rely on moving forward. With these investments, we facilitate growth and believe that they will result in increased earnings and better returns for our owners,” said CEO Karl-Petter Løken.

“Access to suitable areas and facilities will be important in developing the future of Kvaerner. This investment gives Kvaerner control over the necessary facilities, and will reduce the risks and dependencies associated with external storage, production and office facilities,” added executive vice president Steinar Røgenes.

Two other measures for increased productivity and competitiveness are the establishment of a new painting hall of 875 m2, as well as the establishment of a 1 000 m(2) production line for insulation boxes, both within Kvaerner’s area at Stord.

The purchase of such boxes has been a significant part of previous projects and has often had a long delivery time. The investments in the painting hall and production line will be completed in the third and fourth quarters of 2019.

“By doing this ourselves, we reduce costs significantly, and we reduce delivery time from several weeks to a few hours. This will be an important measure in order to strengthen Kvaerner’s competitiveness,” said Røgenes.