Consolidation tightens thruster market with fewer vendors chasing projects

Competition for supplying azimuth thrusters to newbuild tugs and emergency response, salvage vessels will be depleted this year after a period of rapid consolidation in the Scandinavian marine propulsion market.

Kongsberg Maritime in Norway is preparing to acquire Finland-based designer and manufacturer of azimuth propulsors, Steerprop, having already swallowed up Sweden’s Berg Propulsion.

Both acquisitions fill a gap in Kongsberg’s portfolio, although they were rivals battling on various maritime and offshore newbuilding developments, and will reduce the number of vendors competing for projects.

Steerprop specialises in manufacturing propulsors for high ice-class and Arctic vessels; especially icebreakers, polar research vessels and ice-breaking tugs.

The company has an installed base of more than 400 vessels globally and a significant order backlog, with the majority linked to Arctic and ice-class projects, including a contract to supply SP 175 T propulsors to Med Marine for harbour tugs being built to Robert Allan’s RAscal 2100-Z design.

“The acquisition represents a step in strengthening our position in the growing Arctic and ice-class vessel segment,” said Kongsberg Maritime chief executive, Lisa Edvardsen Haugan.

Both companies will continue to operate independently until the transaction has been completed, while deliveries and contractual commitments remain unchanged.

The acquisition of Berg Propulsion broadens Kongsberg’s portfolio, which now covers more vessel sectors and integrated propulsion projects, such as for hybrid-electric terminal tugs and offshore emergency response vessels.