Trelleborg announced Thursday that it has signed an agreement to divest its oil and gas operation in Norway.
The company said the buyer is the current management together with a local partner. The transaction is expected to be finalized in the second quarter of this year and does not have any material impact on the group’s net profit, Trelleborg highlighted.
“When a strategic review was conducted of the business unit at the end of 2019 it became clear that a divestment was the best alternative for us and for this oil and gas operation … it is therefore satisfying to communicate the transaction” Peter Nilsson, the president and chief executive officer of Trelleborg, said in a company statement.
“At the same time, it must be emphasized that the other parts of the group that develop, manufacture, and sell products and solutions for the oil and gas industry are in niches where we want to continue to maintain a presence and where we hold leading positions,” he added in the statement.
“This mainly pertains to safety critical seals, hose systems, bearings solutions and various safety solutions for LNG,” Nilsson went on to say.
Trelleborg’s Norwegian oil and gas operation mainly develops and manufactures rubber-based fire protection solutions and thermal insulation used in offshore oil and gas extraction. The segment had annual sales of approximately $37.1 million (SEK 310 million) in 2020, Trelleborg revealed.
Trelleborg is a world leader in engineered polymer solutions that seal, damp, and protect critical applications in demanding environments, according to its website. Last month, the company revealed that it had signed an agreement and finalized the divestment of its offshore oil and gas operation in Skelmersdale, England. The buyers were said to be individuals holding senior positions in the UK offshore business being sold.
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