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Kverneland acquired by Kubota
The Japanese firm Kubota has acquired the Norwegian farm machinery manufacturer Kverneland, by buying 30 per cent of the shares
from majority owner Jens Ulltveit-Moe.
Kubota has paid NOK 10.50 per share, and has offered to pay the same for the rest of the Kverneland shares, NRK reports. This would be equal to NOK 1.6 billion.
Kverneland has companies in 19 countries, exports to 60 nations and has around 2000 employees globally.
Source: The Norway Post, 22.12.11
DNV and KEMA create a world-leading energy and sustainability company
DNV has acquired 74.3% of KEMA’s shares, creating a world-leading consulting and certification company within the cleaner
energy, sustainability, power generation, transmission and distribution sectors.
DNV and KEMA will form a world-leading energy consulting, testing and certification company that can drive the worldwide transition towards a safe, reliable, efficient and clean energy ecosystem. DNV KEMA will consist of all 1,800 KEMA employees and 500 employees from DNV’s renewable energy and sustainability activities. The new company will be led by Thijs Aarten, the CEO of KEMA, and headquartered in Arnhem, the Netherlands. Mr Aarten will report to a Supervisory Board chaired by DNV CEO Henrik O. Madsen.
“By joining forces, 2,300 experts will meet the needs of an industry in rapid transition and growth. The combination of cleaner fossil-fuel-based power generation and the increased use of renewables will truly make a global impact. This is the strategic rationale behind DNV’s biggest investment ever which, along with DNV’s other 8,000 employees engaged in supporting our maritime, oil & gas and other customers, makes DNV a leading global player in third party and technical advisory roles,” says Leif Arne Langøy, the Chairman of DNV’s Board of Directors.
Strategic and cultural match
KEMA’s activities are highly complementary to those of DNV’s existing renewable energy and sustainability businesses and all
these activities will be integrated to form one compelling service offering to the global energy sector. Services will cover
the entire energy value chain from energy source to end user, including wind energy, carbon capture and storage, carbon trading,
energy efficiency, power generation, transmission and distribution, and energy-related testing, inspection and certification.
The global energy sector is heading for significant changes and investments. The International Energy Agency (IEA) estimates that USD 10 trillion will be spent between 2010 and 2030. Stricter environmental regulations and increased fuel costs will drive a transition towards cleaner fossil fuel and more cost-effective power generation. This transition, including that towards integrating more renewable power into the energy grids, will require system-wide changes. In the US, Europe and Asia, the shift is already under way and will be partly supported by the introduction of smart grids or intelligent energy networks.
“In DNV, we have found a solid, innovative and international partner that has the same strategic vision, purpose and values as our company. For decades, KEMA has been a highly respected global energy consultant and provider of energy-related testing, inspection and certification services. Both KEMA and DNV have strong traditions as independent leading players with world class technical and business knowledge and growth ambitions,” says Thijs Aarten, the CEO of KEMA.
“Over the past two decades, we have become a leading certifier and technical adviser on renewable energy. But to fulfil our ambition of really impacting our customers’ transition towards a low carbon economy we need to also provide independent certification and technical advice to the power generation, transmission and distribution sector. KEMA is globally recognised in this mission sector and is thus a perfect strategic fit,” says Henrik O. Madsen, the CEO of DNV.
“Through organic growth and acquisitions, we have built significant capacity relating to renewable and cleaner energy, such as wind and solar energy and carbon capture and storage. In addition, DNV has recently developed power transmission and distribution capabilities, a field in which KEMA is already a global leader. The acquisition of 74.3% of KEMA’s shares is a huge step towards achieving our ambitions and widens our portfolio, which includes our traditional maritime and oil & gas businesses,” says Mr Madsen.
“DNV KEMA’s core markets are in Europe, North America and China and the new company will benefit our customers by providing them with a broader portfolio of services across the entire energy value chain,” adds Mr Aarten.
While DNV becomes the majority shareholder with a 74.3% share, Alliander retains its holding (25.4%) as does Cogas (0.3%).
The transaction is subject to the approval of the US, Dutch and German competition authorities.
Source: Nortrade, 22.12.11
Information regarding the new Norwegian export financing scheme
Background
On November 18, 2011, Prime Minister Jens Stoltenberg announced that the Norwegian government intends to establish a state-funded
scheme for export credit financing for the Norwegian export industry. The scheme will assume responsibility for the export
financing for projects that qualify under the OECD Arrangement on Export Credits (CIRR qualifying contract financing) previously
managed by Eksportfinans ASA (“Eksportfinans”), including the state-supported export financing scheme offering the OECD Commercial
Interest Reference Rate (“CIRR”).
The purpose of this information memorandum is to address the most frequently asked questions regarding the new export financing scheme in Norway.
How will the scheme become operational?
According to the Norwegian Ministry of Trade and Industry (“MTI”) a state entity, that will assume responsibility for CIRR-qualifying
loans, will be in operation at the latest by July 1, 2012.
Until July 1 2012 (interim period) The Norwegian government has asked Eksportfinans, and Eksportfinans has agreed, to manage the export financing scheme on their behalf until the state entity is in place. Eksportfinans will disburse and administer new loans on behalf of the Norwegian state. The State will be the lender and counterparty to the loan agreements.
What happens to Eksportfinans’ lending activity?
Eksportfinans will not issue new loan offers or execute new disbursements in its own name as of November 18, 2011, with the
exception of those lending activities to which the company is legally committed.
In accordance with an understanding with the Norwegian government, Eksportfinans has executed loan disbursements in accordance with its legal commitments and in its own name from 18 November 2011 until the interim lending scheme was operational. Subject to receipt of necessary approvals, these loans will in turn be transferred to the Norwegian State, represented by MTI. Subsequently the loans will be transferred to the new state entity.
What happens with Eksportfinans’ existing lending portfolio?
Loans that were fully disbursed prior to 18 November 2011 will not be transferred and will remain with Eksportfinans for the
entire repayment period.
Eksportfinans will continue to manage its portfolio of existing loans until final maturity for each individual loan in the years to come.
For practical reasons some loans that were executed after November 18 2011 will remain with Eksportfinans.
What happens with loans with part disbursements both before and after November 18, 2011?
For CIRR-qualifying loans that have been partially disbursed before November 18, 2011, the entire loans (including part disbursements
made before November 18, 2011) are likely to be transferred to the Norwegian State represented by MTI. These loans will be
transferred on to the new state entity as soon as it is operational.
Will the Norwegian state be involved in the lending transactions before July 1, 2012?
During the interim period Eksportfinans has been provided with a mandate to negotiate loan agreements on behalf of MTI as
lender. Such negotiations shall be based on principles and routines practiced by Eksportfinans in the past.
Loan agreements and other loan documentation shall be approved by MTI prior to execution. Eksportfinans shall forward the loan documentation in agreed form to MTI prior to signing for MTI’s review and comments. Upon completion of negotiations of the loan documentation MTI shall forward a written notification to Eksportfinans confirming that the loan documentation can be signed. Subject to receipt of such written notification, Eksportfinans will be authorized to execute the loan documentation on behalf of MTI as lender.
Which loan products will be available going forward?
CIRR qualifying contract financing will be available. Financing is available in the same currencies, tenors and repayment
structures as under the CIRR scheme before November 18, 2011.
Which existing loan products will be discontinued going forward?
The loan products termed corporate loans, project loans, bank cooperation loans and non CIRR qualifying contract financing
will not be available under the new public sector export financing scheme.
What interest rates will be available going forward?
For CIRR-qualifying loans both CIRR interest rates and market term interest rates will be available. Loans on market terms
shall be priced on commercial terms according to the prevailing market conditions. Furthermore, said market terms must be
in accordance with ESA’s reference interest rate guidelines.
Will there be any statutory limitations to loan amounts going forward?
The new state entity is not expected to be subject to the EU Capital Requirement Directive comprising regulations on large
exposures to a single client.
Are the CIRR offers issued by Eksportfinans ASA still valid?
CIRR offers issued by Eksportfinans ASA will remain unaltered, according to the company’s former practice.
What about the renewal of the loan margins on existing loans?
This will be handled by Eksportfinans on behalf of MTI until July 1, 2012, and by the new state entity thereafter.
What happens with pending loan applications?
Eksportfinans on behalf of MTI will respond to and manage pending applications.
Will there still be requirements for loan guarantees?
Both MTI and the new state entity will maintain the same risk profile as Eksportfinans ASA. This means that eligible guarantors,
i.e. GIEK and/or commercial banks, at all times will be required to have an investment grade credit rating.
How will waiver request be handled?
Waiver request shall be submitted to Eksportfinans, which will manage such requests on behalf of MTI.
With whom will clients communicate going forward?
Clients are welcome to communicate with the same people in Eksportfinans as before. Eksportfinans will handle existing and
new client relationships and project management in the interim period. The company shall receive and handle new loan applications
submitted in this period and be responsible for the loan assessment and approval processes, in close liaison with MTI, until
July 1, 2012.
Source: Ministry of Trade and Industry, 22.12.11
Nordic Shipping Banks Beat UniCredit Amid Overcapacity: Freight
DNB ASA and Nordea Bank AB, the largest providers of ship financing, may benefit as competitors face capital shortages from
Europe's sovereign debt crisis.
DNB and Nordea are better positioned to lend money because smaller shipping banks are more vulnerable to slumping freight rates and overcapacity. The two Nordic banks also need to raise less capital because of new banking rules than larger rivals do.
“All of them apart from DNB and Nordea will probably scale back their shipping businesses, because the first thing a bank does to improve its capital ratio is to exit loan agreements to cut their balance sheets,” said Matti Ahokas, an analyst at Svenska Handelsbanken AB in Helsinki, in a phone interview.
UniCredit SpA, whose German unit is one of the country's biggest shipping lenders, and Commerzbank AG, which owns Deutsche Schiffsbank AG, each need to raise more than 5 billion euros ($6.5 billion) to meet tighter rules imposed by the European Banking Authority.
DNB needs to boost its cash buffer by 1.5 billion euros while Nordea, the Nordic region's largest bank, doesn't have to raise any new cash, according to stress-test results released Dec. 9.
Nordea, based in Stockholm, has lost 28 percent in trading this year and Oslo-based DNB has declined 30 percent. Milan- based UniCredit, which needs to raise 8 billion euros by mid- 2012, has dropped a steeper 52 percent. Commerzbank in Frankfurt has slumped 70 percent on concern its 5.3 billion-euro capital shortage will push it toward a second bailout.
'Gaining Position'“
We are benefiting as we're the No. 1 shipping bank in the world,” Nordea Chief Executive Officer Christian Clausen said in
an interview on Dec. 9. “While the amount we have on our balance sheet is not going to increase, we are gaining position.”
Europe's debt crunch is threatening growth in the container industry while the introduction of new ships means shipping lines may face half a decade of oversupply. That has sent freight rates plunging 70 percent since a 2010 peak, in turn putting pressure on the profitability of shipping companies.
In Germany, home to the world's third-largest container fleet, small and mid-sized shipping companies along the North Sea coast face potential insolvency as banks demand more collateral for critical loans and they struggle to pay principal and interest on credit, Max Johns, spokesman for Germany's VDR shipping association, said in an interview.
Bankruptcy, Insolvency
So far, Germany's Beluga shipping line has filed for bankruptcy while Sietas KG, Germany's oldest shipyard, has filed for
insolvency because it can't pay debt and salaries.
“This is the worst crisis since World War II,” Johns said. “A lot of the charter owners cannot pay interest rates to the banks because of unusually low charter rates.”
DNB focuses on the largest shipping companies, which shields it more from market fluctuations, according to Leif Teksum, group executive vice president and head of the Large Corporates and International unit, Harald Serck-Hanssen, head of shipping, offshore and logistics, and Trygve Young, chief risk officer. They spoke on a Dec. 16 conference call.
“It is remarkable to see how small the losses have been,” Young said. DNB, which has financed the shipping industry for about 150 years, may have some “challenging cases” in the next two years, Serck-Hanssen said.
Loan Agreements
Of 250 DNB clients, 50 were in breach of loan agreements over the last three years, Serck-Hanssen said. Of those 50, 15 were
restructured and in three cases DNB had to take over assets. Loan losses are likely to rise from third-quarter levels because
of the shipping crisis, he added.
“As one of the leading global lenders to shipping, DNB will invariably be affected by the cyclicality in the sector, although its long-standing relationship with most of its customers and experience in the sector is likely to mitigate this,” Fitch Ratings said on Dec. 16 when it affirmed DNB's long-term issuer default rating at A+.
“DNB in Norway has its main exposure and revenue stream from a strong domestic economy that is doing far better than economies in other European countries,” Bengt Kirkoen, an analyst at First Securities ASA in Oslo, said in a phone interview.
Nordea, which navigated the 2008 financial crisis without a state bailout, hasn't reported a quarterly loss since the fourth quarter of 1998. Its focus on retail banking in Sweden, Finland, Norway and Denmark made it less vulnerable to loan losses than most European peers, Ahokas said.
Low Funding Costs
"DNB and Nordea have some of the lowest funding costs in Europe, and their wholesale funding costs are a great competitive
advantage,” he said. “A lot of banks would probably want to be more active in shipping finance, because of the high margins,
but they cannot because of the funding situation.”
Price competition in the industry means that many companies with smaller fleets of 15 vessels or less can't compete with their larger rivals and are operating at a loss.
“We're not happy with the market at the moment, as it has turned negative since the summer,” said Oliver Faak, managing director for Norddeutsche Landesbank Girozentrale's German shipping unit. The lending environment has also “become much tougher and much more demanding” as banks have to demand tougher terms for loans, he said.
Still, the Hamburg, Germany-based bank, known as NordLB, expects its shipping portfolio to “moderately” grow in size in 2012. NordLB is about to hire another 15 people for its ship- finance business in coming months in part to help clients who are in financial trouble restructure their businesses, he said.
UniCredit's German shipping unit, which in January forecast its shipping portfolio would grow as much as 10 percent this year, expects it will be reduced in 2012, said Holger Janssen, head of global shipping at UniCredit Bank AG in Hamburg.
“Shipping companies are favoring their own tonnage, which is why tonnage providers and hence the time charter rates may become
the victims of overcapacity,” he said. “It is not surprising that in the current shipping market climate bank lending will
continue to tighten.”
Source: Nortrade, 21.12.11
DNV Business Assurance and Nemko join forces in Presafe
The two global certification bodies DNV Business Assurance and Nemko announce that they will merge certification and testing
operations for the medical and EX equipment industry in the joint venture DNV Nemko Presafe. The joint venture will commence
operations from January 1st 2011.
“We are proud to offer a highly competitive and holistic service portfolio which incorporates the wide array of quality and safety management system and sustainability certification expertise of our parent companies”, says Haakon Knudsen, Managing Director of DNV Nemko Presafe.
DNV Nemko Presafe will provide services related to the Medical Device Directive, the ISO13485, ATEX directive and IECEx standards. By means of merging the expertise and networks of DNV and Nemko, DNV Nemko Presafe aspires to provide manufacturers and operators across the supply chain in the medical and EX equipment industry with the most effective and attractive service offering on the market.
“By joining forces within Medical and EX equipment certification and testing in DNV Nemko Presafe, we will be able to offer enhanced services to new and existing customers. Presafe offers an extended network of skilled and dedicated specialists with global knowledge, and can adapt to local needs worldwide. Customers will experience the excellent competence of the staff and even faster delivery of quality services,” says Thomas Vogth-Eriksen, CEO of DNV Business Assurance.
“Nemko is excited to further expand our value proposition to the customer through the establishment of DNV Nemko Presafe. The two parties are quite complementary in their current services and together the new entity has global reach, based on the strengths of both DNV and Nemko,” says Dag Tørvold, President and CEO of Nemko.
DNV Nemko Presafe will have its central technical competence center in Oslo, Norway, and build on the heritage of DNV Business
Assurance and Nemko in the global market for compliance and market access services across the whole supply chain for medical
and EX equipment. The joint venture will have a reach across 48 markets with a network of 2,200 professionals through the
combined forces of DNV and Nemko. DNV Nemko Presafe will leverage expertise, speed and customer service on a global scale.
Source: Nortrade, 21.12.11
Norway contributes to safeguarding European economy
“Norway has today offered up to 6 billion SDR (equivalent to 7 billion euros) to the International Monetary Fund, as a bilateral
loan to contribute to stabilising the European and international economy, and thus also to safeguard the Norwegian economy
and Norwegian jobs”, says Prime Minister Jens Stoltenberg.
The loan will be part of ensuring that the IMF has sufficient lending capacity to assist member countries with emergency funding. This is vital also for countries in Europe.
“Many of Norway’s trade and cooperation partners are in a difficult economic situation. We have a strong interest in international economic and financial stability”, says Stoltenberg.
Norway’s loan offer is conditional, depending on a broader international effort.
The euro area countries promised Monday to make loans totalling 150 billion euros available for the IMF. Several EU countries outside the euro area have also declared their willingness to offer new loans. Countries outside Europe are considering additional contributions.
Pending the approval of the Norwegian Parliament, Norway’s loans will be made available to the IMF’s general lending operations.
The funds will therefore be available for all IMF member countries, and not earmarked for any particular region or group of
countries.
Source: Office of the Prime Ministry, 21.12.11
Export Finansing
Prop. 34 S (2011-2012) Proposition to the Storting (draft resolution)
In order to ensure that competitive export financing for Norwegian exporters will be continued, the Government is proposing
in this draft resolution to establish a governmental state-funded credit financing scheme for Norwegian exporters. Until the
new scheme is operational an interim arrangement will be needed, in the form of a scheme administered in cooperation with
Eksportfinans. Under the interim scheme the state will be the counterparty to the loan agreement, while Eksportfinans will
administer the financing on behalf of the state. The interim scheme will operate until the new permanent governmental state-funded
scheme is in place, which will be at the latest by 1 July 2012.
Source: Ministry of Trade and Industry, 21.12.11
WindFlip Present Solution for Offshore Wind Turbine Deployment
To tow the new gigantic off-shore wind turbines now being developed in Europe far out to sea, a Norwegian company has devised
a clever and simple mechanism. Their WindFlip tows the turbine out almost horizontal – and then when it gets to the site,
tilts it up into position – using only the weight of seawater to do it.
The structure contains 29 air filled compartments. Once at the site each of the compartments inside the Windflip is sequentially filled with water, causing the stern to slowly submerge, so that both the Windflip barge and the turbine it is holding flip up 90°. Then it releases the turbine for connection with a pre-installed mooring spread, and then tips the barge back to horizontal by clearing the ballast tanks of seawater with compressed air.
Their design has been recently been amped-up in response to the rising sizes of turbines being deployed. Now that a single turbine can be as large as 5 to 6 MW, WindFlip has been redesigned to accommodate turbines that large.
But the off-shore wind industry is now maturing in the EU. So other, and now more established companies have already invented ways to get gigantic wind turbines delivered out to sea. So WindFlip is focused on the next step for offshore wind: the floating turbine market.
“Earlier this year, WindFlip took the strategic decision to focus on the floating wind turbine niche,” says general manager Ane Christophersen.
“In the fixed turbine installation market there are a lot of big, established actors. We felt it might be that much harder for us to get into. But with the floating market, we can take the long-term view and try to develop a solution for them [turbine designers].
So, in conjunction with state funding through Innovation Norway and Norway’s Statoil, the developer of the Hywind floating turbine, Windflip has refined the processes for assembly, loading, transit and release in R & D in Marintek.
Some of the improvements include being able to tow the turbine at an angle so as to keep the delicate machinery in the nacelle 40 metres above the water (120 feet), and be able to navigate it in pretty rough seas. Now it could handle significant wave heights up to 2.5 meters (8 feet) — the point at which fast ferries stop their service — and still be able to protect its cargo.
The hull, decks and bulkheads are designed to withstand four bars of pressure, and the barge can move at over eight knots (14.8km/h or about 8 miles an hour). At full scale, the hull would measure 100 metres long (300 feet) and 30 metres (90 feet) wide, and be able to hold 17,000 cubic metres of ballast water when fully upended.
The hull is undergoing a re-fit to “match” Hywind — on the grounds that it is the “obvious choice as it is the most mature technology” and is likely to be the first floating turbine to go on sale in Europe, but it is also working with companies developing other types of floating designs.
The startup is looking for a partner to take it to full scale test and commercialization.
That means Tine’s own butter may be on the shelf next to the Belgian butter, an advantage for Tine because Norwegian consumers
tend to buy local products over imported ones. “If we can’t sell our butter, it will cost us tens of millions of kroner,”
Synnøve Finden’s sales director, Harald Bjerknes, told Aftenposten. “When the rules change so quickly, it’s very difficult
for us to operate.”
Source: Nortrade, 19.12.11
Kongsberg Automotive secures 40MEUR (311 MNOK) contract for a new Crash Safe Suspension System for truck cabins
Kongsberg Automotive’s (KA) Actuation & Chassis business area has been awarded a contract for the supply of a new suspension
system for truck cabins, to a global truck manufacturer.
The system consists of a stabilizer bar combined with two crash brackets. The system is based on new safety technology developed at the KA R&D centers in Sweden and Norway, in close cooperation with several leading research institutions in Norway. The system is critical to help reducing the impact on the truck cabin in the case where a truck crashes into the rear of another big vehicle. The system is an example of the new safety focused products within KA’s portfolio.
The total contract value is 40 MEUR (311 MNOK). The contract is for the European market and estimated life time of the contract is 5 years with start of production in 2013. Production will be in KA’s facilities in Mullsjø, Sweden and Rollag, Norway. Approximately 50 % of the contract value will come from a brand new product concept – the crash bracket system – which demonstrates an exciting growth opportunity.
“This is a very important contract for us as the legal requirements for safety and reliability features are increasing more
and more. We are very satisfied with the close cooperation with the University and research institutes in Trondheim, Raufoss
and Kongsberg, supported by The Research Council of Norway, and that this cooperation is materializing into important contracts”,
says Håkon Amundsen, VP sales & marketing for commercial vehicles in KA.
Source: Nortrade, 19.12.11
