Svanehøj Acquires Wärtsilä Tank Control Systems
Aerial View of Oil Refinery and Fuel Storage Tanks, Tsing Yi, Hong Kong (Image source: Svanehøj Danmark A/S)
Gas is a crucial part of the sustainable energy system of the future, and Svanehøj must be a significant player in the value chain that ensures the supply of gas at a global level. This is the vision of the Danish gas pump specialist, which is now putting its words into action through the acquisition of Wärtsilä Tank Control Systems (TCS), which employs more than 50 people in the UK, Singapore, and France. The acquisition of Wärtsilä TCS, historically known as Whessoe, brings Svanehøj unique skills in the production, sale, and service of high-end measurement systems for gas tanks on LNG ships and land-based LNG systems.
“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 an expression of our desire to make Svanehøj a globally leading 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”, says CEO of Svanehøj, Søren Kringelholt Nielsen.
Access to 500 LNG ships
The acquisition of Wärtsilä TCS opens new, exciting opportunities for Svanehøj’s rapidly growing service business, which has almost tripled its revenue since 2018. Svanehøj is already a leading 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.
“With this acquisition, Svanehøj will now be the preferred service provider for about 500 LNG vessels with tank measurement systems from Wärtsilä TCS. Once on board, it will be attractive for many customers to consolidate their service jobs and make use of our competencies within servicing pumps, compressors, valves, and instrumentation,” says Morten Christian Larsen, Director, Service & Aftersales, at Svanehøj.
With the acquisition, he will lead a service department with more than 70 employees and activities in Denmark, UK, China, and Singapore. With an expected increase in activity of initially 30-40%, the plan is to employ additional staff to support the offices in Denmark and Singapore.
New land-based division based in France
As part of the acquisition of Wärtsilä TCS, a new independent business for land-based activities will be established. The business will be based in Calais, France, from where Wärtsilä TCS currently produces measurement systems for land-based LNG systems.
“Land-based business has not been a focus area at Svanehøj up until this point. But it is a strong complement to our existing business as it supports our purpose of contributing to a cleaner world. And there is no doubt that the need for gas systems and solutions will increase both on land and at sea in the coming years, says Søren Kringelholt Nielsen.
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. Following the most recent acquisition, Svanehøj Denmark employs approximately 230 people and has activities in Denmark, the United Kingdom, France, Singapore, China, and Japan.
Closing of the transaction is subject to fulfilment of closing conditions.
Source: Svanehøj Group A/S