Kvaerner Transfers Rosenberg Yard to Local Company

The Kvaerner Rosenberg offshore yard is in the final stages of concentrating its activities on Buoy Island in Stavanger in parts of its original area. In this context agreement has been reached with local interests to take over the property as a whole, and an agreement is expected to be signed by January 15th. Final confirmation of the agreement will be made in May.

With these changes Kvaerner Rosenberg, which is owned by Aker Kvaerner, has laid the foundation for further specialization as a compact yard and efficient building site for different kinds of offshore structure. The concentration of activities in a smaller area also opens the way to new operations on the areas thus freed up.

Under the agreement the whole of Aker Kvaerner's property on Buøy will be transferred to a local property company. The owners of the company will be Westco AS, Brodrene Risa AS, A R Inkoronator AS and Kvaerner ASA, the parent company of the Aker Kvaerner Group. Aker Kvaerner will own 30 percent of the property company. Stavanger local council has the option of participating in the company with up to 10 percent.

The site of the compact yard will be leased to Kvaerner Rosenberg. The corresponding office premises will also be leased to Aker Kvaerner's various activities which will use these premises as before. The property company is taking over an area of around 420,000 square meters of which Aker Kvaerner will use around 340,000.

The agreement values the properties at around NOK 350 million. The transaction will give Aker Kvaerner a positive cash flow of around NOK 190 million. The property transfer will not have a significant effect on the company's results.

In accordance with the existing agreement Aker Kvaerner will be responsible for an environmentally acceptable clean-up of the area. A close inspection of the relevant sites will be undertaken before the agreement is confirmed.