Danish gas pump specialist Svanehøj is set to acquire Tank Control Systems (TCS) business
Wärtstilä TCS designs, manufactures, sells and services high-end measurement systems for gas tanks on LNG ships, offshore storage and land-based LNG terminals. The division also supplies safety products and associated systems for LPG land-based storage and underground cavern storage.
Svanehøj is looking to expand its OEM activities and add new skills to its growing service department for gas tankers.
The Tank Control Systems business became part of Wärtsilä as a result of the acquisition of Total Automation in 2006, with approximately 50 employees based in the UK, France and Singapore and a revenue of €7.5M (US$8.78M) in 2020.
The acquisition will make the Danish supplier the preferred service provider for almost 500 LNG vessels currently using Wärtsilä TCS systems.
Svanehøj will now establish an independent business for land-based activities 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, said Svanehøj chief executive Søren Kringelholt Nielsen.
The present acquisition is Svanehøj’s second in the last year after taking over service specialist FORCE Technology Marine Equipment Service in November 2020.
“Gas is one of the biggest driving forces in the green transition. Liquefied natural gases 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”, said Mr Nielsen.
Closing of the transaction is subject to fulfilment of closing conditions, expected in Q4 2021.
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