Kvaerner To Open New Umbilicals Facility
|Thursday, January 24, 2002
Kvaerner has decided to invest NOK 100 million in a new umbilicals production facility for the subsea segment of the oil and gas industry in the Gulf of Mexico or Houston area. Speaking about today’s decision, Helge Lund, President & CEO of the Kvaerner Group, said: “ As the financial challenges of Kvaerner now are about to be solved, I’m happy to announce that we are able to invest in the exciting growth area of umbilicals. This is a growing market and the profitability is good. We have invested in more capacity at Moss on several previous occasions – but that capacity has now been fully utilised. If we want to maintain our market share and to take part in the coming growth, we must increase our production capacity further.” A substantial part of the growth within sub-sea equipment generally and umbilicals especially, is expected to arise in the Gulf-of-Mexico, and in new markets such as West Africa and Brazil. Kvaerner has therefore decided to establish new production capacity in the most relevant of these areas. The umbilicals are developed in Norway and the production facility at Moss in Norway has an overall market share of 50 per cent and is exporting 95 per cent of its production. From Moss, umbilicals are delivered to the North Sea, the Gulf-of-Mexico, West Africa and South East Asia. A total of 1,100 km of umbilicals have either been delivered or are order from Kvaerner Oilfield Products at Moss.