Swedish provider of engineered polymer solutions Trelleborg has divested another part of its oil and gas portfolio – this time in Norway.
Trelleborg said on Thursday that, in its financial statements, the operation was recognized among ‘assets held for sale’ and that it had annual sales of around SEK 310 million ($37.1 million) in 2020.
According to the company, the transaction does not have any material impact on the group’s net profit. Trelleborg also pointed out that the buyer was the current management together with a local partner. The transaction is expected to be finalized in the second quarter of 2021.
The operation mainly develops and manufactures rubber-based fire protection solutions and thermal insulation used in offshore oil and gas extraction.
Peter Nilsson , president and CEO of Trelleborg, said: “ When a strategic review was conducted of the business unit at the end of 2019 it became clear that divestment was the best alternative for us and this oil and gas operation.
“ Today, it is therefore satisfying to communicate the transaction. 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.
“ This mainly pertains to safety-critical seals, hose systems, bearings solutions, and various safety solutions for LNG ”.
This is the second recent divestment of oil and gas businesses by Trelleborg. Namely, the company got rid of its offshore operation in Skelmersdale, England , in March this year.
Like the sale of the Norwegian oil and gas business, Trelleborg sold its UK offshore business to people in senior positions within its UK company.
The company said at the time that the divestment was part of Trelleborg’s strategy to focus on selected market segments.