30 October 2002 – The Norwegian-based global industrial group Aker Kvaerner has reached an agreement to acquire the Boiler business of the international engineering and contracting company Fortum Engineering in Finland.
Through the deal, Aker Kvaerner broadens its biomass product portfolio and extends its markets reach, particularly in Continental Europe.
Aker Kvaerner will acquire Fortum Engineering’s Boiler business, including its bubbling fluidised bed (BFB) boiler technologies and the BioMAC trademark, patents and rights. A total of 36 Fortum Engineering employees in Helsinki, Finland will be transferred to Aker Kvaerner. The personnel will continue to provide services to three ongoing boiler projects – in Sweden, Finland and Germany.
Fortum Engineering’s Boiler business will become part of the Power Division of Aker Kvaerner’s Pulp & Paper business area. The Power Division has around 1 300 employees and is headed from Tampere, Finland. Its main operations are located in Finland, Sweden and USA, with a wide international network of sales, service and support offices.
Whereas the pulp and paper industry historically has represented its main market, Aker Kvaerner’s Power division is following a strategy to expand its services into the power generation segment. The acquisition of Fortum Engineering’s Boiler business is in line with this strategy.
The parties have agreed not to disclose the value of the transaction.
Aker Kvaerner is a pulp and paper, oil and gas services, engineering and construction, and shipbuilding Group and has annual revenues around €6bn, with some 42 000 staff located in more than 30 countries.
Aker Kvaerner’s Power Division is one of the world’s leading suppliers of boilers and evaporation plants to the pulp and paper, and power industries. The Division employs 1300 people worldwide and has net sales of € 340m ($334.5m). The Power Division is a pioneer in fluidised bed combustion. Approximately 200 fluidised bed boilers in operation testify to the expertise in fluidised bed technology and in handling demanding fuels. Kvaerner is the No. 1 chemical recovery equipment supplier in the world with its 300 recovery boiler and 300 evaporation unit deliveries.
Fortum Engineering Ltd is a part of Fortum’s Energy Solutions business unit. Fortum Engineering is an international engineering and contracting company serving power utilities, developers and industrial energy users. The net sales of Fortum Energy Solutions is &euro603m and the staff numbered over 5400.
The agreement is still subject to due diligence and the approval of the competition authorities.