Aker Solutions Makes Second Norwegian Drilling Technology Purchase

To buy Norwegian mechanical workshop company, gaining capacity to assemble, test and overhaul drilling equipment especially for North Sea market.

Aker Solutions ASA, Oslo, (Oslo: AKSO) plans to buy Lyngdal, Norway-based mechanical workshop company Lyngdal Mek. Verksted for an undisclosed price.

The deal increases Aker Solutions’ capacity to assemble, test and overhaul drilling equipment especially for the North Sea market.

Lyngdal Mek. Verksted has about 6,500 square meters of workshop area suited for large overhaul jobs. During the past five years, Lyngdal Mek. Verksted has been a key sub-supplier to Aker Solutions' drilling technologies business. LMV's current scope of work for Aker Solutions includes assembly and testing, as well as overhaul and upgrade work on drilling equipment and special orders for rigs on the Norwegian Continental Shelf.

This is the second recent acquisition by Aker Solutions' drilling technologies business in its home region, following the takeover of Herman Hansen Mek. Verksted, another assembly and test workshop, in March.

Aker Solutions drilling technologies business head Thor Arne Håverstad says, “The takeover of Lyngdal Mek. Verksted is the latest example of our strategic moves to boost our capacity to serve drilling customers in the North Sea market. The acquisition of LMV will help us take a larger share of the upcoming overhaul market, facilitated by our growing installed base.”

The takeover of LMV is mainly expanding the Aker Solutions' overhaul and upgrade capacity, as the company's facilities in Kristiansand are expected to be fully utilized by new-build activities. The acquisition will also increase Aker Solutions' flexibility and ability to further expand its production competence and facilities in Brazil and Asia Pacific.