The restructuring efforts at Fortum´s power plant engineering unit have been successfully completed. The shares of Fortum Engineering Ltd together with most of the business will be sold to a new joint venture company to be formed together with Pohjolan Voima and other partners. The boiler business will be sold to Aker Kvaerner. Fortum will retain key engineering activities related to the operation and maintenance of its power plants.
“According to its strategy, Fortum has been focusing on its core businesses in the Nordic area. The solutions reached concerning our power plant engineering unit are a consistent and a very satisfying outcome of these restructuring efforts, says Tapio Kuula, Head of Fortum´s Power and Heat sector.
Fortum and Pohjolan Voima have agreed to establish a new company that will acquire the shares of Fortum Engineering Ltd and Empower Engineering Oy, the power plant engineering subsidiaries of the two groups, involving some 450 and 60 employees respectively. The intention is to invite other engineering companies as shareholders to the new company. The transaction will create a strong independent North European power engineering and consulting entity. The new company is expected to start operations at the beginning of 2003 subject to authority clearance. Both Fortum and Pohjolan Voima will have minority positions in the company, initially 40 % each. The transaction will be cash flow neutral to Fortum.
The new company will specialise in energy related consulting and expert engineering services to energy companies, utilities, energy intensive industry and power plant investors. Mr Eero Auranne, MSc (Eng), will be appointed President of the new company.
Fortum has also signed a Letter of Intent to sell its boiler business to Aker Kvaerner. The deal will comprise Fortum Engineering Ltd’s entire boiler business and affects 36 employees, who will join Aker Kvaerner.
“With these arrangements the power plant engineering businesses will have the critical mass and independence needed to fully utilise their competencies and market opportunities. This is a good start for all the organisations involved in the transactions” says Eero Auranne, currently President of Fortum Energy Solutions.
For more information, please contact:
Mr Tapio Kuula, President, Power and Heat Sector, tel. +358 10 452 4112
Mr Eero Auranne, President, Fortum Energy Solutions, tel. +358 50 453 3420