Havyard Increases Holding in Norwegian Electric Systems
Havyard Group ASA now has a 50.5% ownership interest in the technology company Norwegian Electric Systems AS.
Before the acquisition, Havyard Group ASA owned 37.9 % of Norwegian Electric Systems AS. By purchasing shares from companies belonging to Jan Berg and Frithjof Hustig, the group is now the company's majority shareholder. After the acquisition, Berg's and Hustig's companies will own 32.28% and 6%, respectively, of Norwegian Electric Systems AS. The remaining shares in the company are owned by other key personnel. At his own request, Jan Berg will start in a new role in the company, while Tor Leif Mongstad will take over as the new CEO.
A win-win situation
Havyard Group's strategy is to develop and deliver ship technology through having the necessary expertise in and control of the critical links in the value chain for the design and construction of advanced vessels. More and more of these ships have diesel-electric or hybrid propulsion systems, which are a critical and strongly integrated element in the overall ship design. This was the reason why Havyard was involved in the start-up of Norwegian Electric Systems and why the group has now acquired the majority of the shares in the company.
Geir Johan Bakke, President and CEO of Havyard Group ASA, says that it was now natural for the Group to play a more active role in Norwegian Electric Systems in order to further develop the company. 'Norwegian Electric Systems is an agenda setter as regards the development of new, advanced ship designs based on diesel-electric or hybrid propulsion systems. Collaboration with the supplier of such products is decisive if we are to develop the best ships and deliver the agreed quality to our demanding customers – at the right time and on budget. Our main motivation for increasing our holding in Norwegian Electric Systems is that we want to contribute to developing even better products for our customers, whether they buy a system from Norwegian Electric Systems or a ship design or newbuild from Havyard.
This will result in value added for Havyard, Norwegian Electric Systems and our customers in the form of even better and more competitive products,' President and CEO Geir Johan Bakke concludes.
Product development and synergies
Tor Leif Mongstad will take over for Jan Berg as CEO of Norwegian Electric Systems. At his own request, Jan Berg will become head of business development in the company.
Norwegian Electric Systems will continue as an independent company with responsibility for its own product development, sales and production. However, there will be increased focus on realizing synergies as a result of the collaboration with Havyard, for example in relation to procurements and production.
'Synergies can be achieved in particular from the collaboration with Havyard Power & Systems, which also has products and expertise in electronics and electric systems,' says the new CEO of Norwegian Electric Systems, Tor Leif Mongstad. 'One example is switchboard production,' he continues. 'Another is Havyard Power & Systems' expertise in electric designs and ship engineering, which will provide valuable input to Norwegian Electric Systems' product development.'
'In addition to the potential inherent in the existing diesel-electric systems, we believe that Norwegian Electric Systems' newly developed hybrid battery diesel-electric propulsion system QUEST® will have a big market and substantial environmental benefits. It will mean big savings on fuel and will significantly reduce emissions to air.'
'Until now, I have been a customer of Norwegian Electric Systems and, as such, have reaped the benefits of the excellent products they have delivered for Havyard's newbuilds. I am now looking forward to starting this job and contributing to continued positive development together with Norwegian Electric Systems' highly capable organisation,' says the new CEO Tor Leif Mongstad enthusiastically.
Jan Berg, founder and former principal owner of Norwegian Electric Systems, is one of the pioneers in his field. Jan Berg started as an apprentice electrician already in 1964 and worked both as a ship's electrician and on the sale and development of electric products and systems for several companies before taking part in starting Scandinavian Electric in 1984.
As he developed the company, Jan Berg focused on overall expertise in electric systems and on delivering electronic services to the maritime industry, which became the company's main market. Early on, the company started to deliver motors, generators and frequency converters to equipment suppliers, shipyards and shipping companies.
Jan Berg emphasizes the close collaboration and long-standing relations with good subcontractors as one of the critical success factors for the companies he has developed. 'Close proximity to the experts in the products and systems we deliver is another critical success factor I would like to emphasize. Where other companies have had to rely on subcontractors and external consultants, we have focused on having this expertise in-house. It is easy to solve service-related challenges or problems with developing a new product when you can find the answer by popping in on a colleague in the office next door.'
Now that Mongstad is taking over as CEO of Norwegian Electric Systems, Jan Berg will concentrate on developing selected markets. He will also be responsible for sales to some of the company's big existing customers and contribute to the company's general business development. He has great faith in the new CEO and their future collaboration. 'I have known Tor Leif since the early 1990s, and we have cooperated on several levels for many years. In recent years, Tor Leif has also been a member of the board of Norwegian Electric Systems. We know each other well and complement each other, so I think we will make a great team that can take the company a step further. It will probably be a bit of a challenge not to be in charge any more, but I'm sure we will manage,' says Jan Berg with a smile.
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