Frontline tanker group has snapped up additional shares in exhaust gas cleaning manufacturer Feen Marine Scrubbers, Inc
Frontline tanker group has snapped up additional shares in exhaust gas cleaning manufacturer Feen Marine Scrubbers, Inc (FMSI).
The Norwegian-managed group bought part of a 30% stake liquidated by Feen Marine founder Bjørnar Feen, bringing Frontline’s total investment in Feen Marine to 28.9% of shares.
Frontline Management chief executive Robert Hvide Macleod said his company was pleased with the acquisition.
“Setting aside potential financial benefits, our ownership in FMSI has allowed Frontline to source high specification scrubbers on short notice, which we believe will present a challenge to many owners as the deadline for sulphur emissions compliance approaches,” Mr Macleod said.
Frontline acquired a 20% stake in Feen Marine in June 2018 as part of a deal that also saw the tanker owner purchase exhaust gas cleaning systems (EGCSs) for 14 vessels with the option to order 22 more at a fixed price.
At the time, Mr Macleod said an ownership stake in a scrubber manufacturer put the company in a good position ahead of IMO’s 2020 regulations on sulphur in fuels, giving his company the ability to source a large volume of scrubbers at a good price.
Since its formation in 2017, Feen Marine has received orders for more than 150 EGCSs and has delivered 45 systems. A statement said Feen Marine is increasing its production capacity “in response to market demand” by building a 40,000-m2 production facility in Indonesia. The new facility is set to begin operations in February 2019 and is expected to increase Feen Marine’s manufacturing capabilities by five times.