Trelleborg divests Norwegian offshore oil & gas operation
Trelleborg has signed an agreement to divest its oil & gas operation in Norway. In the financial statements the operation is recognized among Assets held for sale. It had annual sales of approximately SEK 310 M 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.
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 finalized in the second quarter of 2021.