Kværner

{{Short description|Norwegian engineering and construction company}}

{{Infobox company

| name = Kværner ASA

| logo = Kværner logo.svg

| type = Allmennaksjeselskap

| traded_as = {{ose|KVAER}}

| foundation = 1853

| location = Oslo, Norway

| key_people = Karl-Petter Løken, President & CEO

| area_served =

| industry = Heavy industry

| predecessor = {{ubl|Kvaerner Brug|(1853)|Trafalgar House|(1996)}}

| defunct = 2005

| successor = {{ubl|Aker Kvaerner|(2004–2008)|Aker Solutions|(2008–2011)|Kværner ASA|(2011 onwards)}}

| products =

| revenue =

| operating_income =

| net_income =

| num_employees = 2,700

| parent =

| subsid =

| homepage = [http://www.kvaerner.com kvaerner.com]

| footnotes =

}}

Kværner was a Norwegian engineering and construction services company that existed between 1853 and 2005.

During its initial decades, the firm was involved in the manufacture of cast iron stoves and hydroelectric turbines. The turbine business was Kværner's leading product throughout the first half of the twentieth century, although it had also branched out into the production of bridges, cranes, and pumps. Kværner underwent a spree of international acquisitions during the 1990s, which included Govan Shipbuilders, Götaverken, Trafalgar House, Vyborg Shipyard; its headquarters were also relocated from Oslo to London during this decade. The heavy debt burden built up by acquiring these businesses, some of which were actually unprofitable, jeopardised the company's continued existence by the start of the twenty-first century.

Efforts to stabilise the company included the selling off of Cunard Line and its construction division, as well as the receipt of financial support from senior figures within the Russian oil company Yukos. In order to avoid bankruptcy however, Kværner was compelled to merge with its long time rival Aker ASA. During 2004, Kværner was amalgamated into the newly formed subsidiary of Aker ASA - Aker Kværner, which was renamed Aker Solutions on 3 April 2008.

On 6 May 2011, Kværner re-emerged when the EPC (engineering, procurement and construction) part of Aker Solutions took the Kværner name. The new Kværner company was listed on the Oslo Stock Exchange on 8 July 2011.{{cite web |url= https://www.kvaerner.com/About-us/History/https://www.kvaerner.com/toolsmenu/Media/Press-releases/2011/Haugan-CEO-of-Kvaerner/ |title= Our heritage: Building strength through experience |publisher= Kvaerner |language=en-GB |access-date= 25 March 2016}}{{Dead link|date=February 2020 |bot=InternetArchiveBot |fix-attempted=yes }} During 2020 however, Aker Solutions opted to restructure and merge with Kvaerner.

History

Kvaerner Brug was founded in Oslo in 1853 by industrialist Oluf A. Onsum (1820-1899). Early on, the primary activity of the business was its involvement in the production of cast iron stoves. In 1870, Kvaerner built its first hydroelectric turbine.{{cite web |url= http://www.industrimuseum.no/personer/historiskepersoner/olufonsum |title= Oluf Adelsten Onsum |publisher=Norsk Teknisk Museum |access-date= 25 March 2016}} During the early 1900s, Kvaerner power turbines remained the principal product line, which also included bridges, cranes, and pumps. Kvaerner was listed on the Oslo Stock Exchange in 1967. By the 1990s, the company assembled a collection of engineering and industrial businesses, including shipbuilding, construction of offshore oil and gas platforms, production of pulping and paper manufacturing equipment, and operation of a shipping fleet.{{cite web |url= https://nbl.snl.no/Oluf_Onsum |title= Oluf Onsum - Forretningsdrivende, Industrigründer |publisher=Norsk biografisk leksikon |first= Knut |last= Kjeldstadli |language=no |access-date= 25 March 2016}}

Directors-general of Kværner after the stock exchange listing were Kjell B. Langballe (1960–1976), Carl Røtjer (1976–1986) and Mikal H. Grønner (1986–1989). Chairmen were Frithjof A. Lind (–1982), Johan B. Holte (1982–1985), Emil Eriksrud (1985–1986), Carl Røtjer (1986–1989), Kaspar Kielland (1989-1996), and then Christian Bjelland (1996-2001). Since 2011, the CEO has been Jan Arve Haugan.{{cite press release |url= https://www.kvaerner.com/toolsmenu/Media/Press-releases/2011/Haugan-CEO-of-Kvaerner/ |title= Haugan CEO of Kvaerner |publisher= Kvaerner |date= 2 May 2011 |access-date= 25 March 2016 |archive-url= https://web.archive.org/web/20160409221034/https://www.kvaerner.com/toolsmenu/Media/Press-releases/2011/Haugan-CEO-of-Kvaerner/ |archive-date= 9 April 2016 |language=en-GB |url-status= dead}}

Erik Tønseth became director-general of Kværner in 1989, and under his leadership the company underwent large-scale international expansion, acquiring the state-owned Govan Shipbuilders from British Shipbuilders.{{cite web |url= https://snl.no/Kv%C3%A6rner_ASA |title=Kværner ASA |publisher=Store norske leksikon |first= Rolf |last= Bryhn |language=no |access-date= 25 March 2016}} During 1992, Kværner acquired the Swedish company Götaverken. In 1996, Kværner acquired the British conglomerate Trafalgar House, after which it moved its international headquarters from Oslo to London.{{cite web |url = http://www.iht.com/articles/1996/02/28/traf.t.php |title = Kvaerner Is Close to Bidding for Troubled Group: Lifeline for Trafalgar House? |publisher = International Herald Tribune |language=en-GB |date = 28 February 1996}}{{cite web |url = https://www.independent.co.uk/news/business/kvaerner-buys-trafalgar-for-pounds-904m-deal-1340426.html |title = Kvaerner buys Trafalgar for pounds 904m deal |first = Russell |last = Hotten |publisher = The Independent |language=en-GB |date = 5 March 1996}} During January 1996, Kvaerner purchased a stake in the Vyborg Shipyard ({{langx|ru|Выборгский судостроительный завод}}) and renamed it Kverner-Vyborg Shipyard ({{langx|ru|ОАО "Квернер-Выборг Верфь"}}) which was the largest manufacturer of offshore installations in Russia.{{cite news |last=Чеберко |first= Иван (Cheberko, Ivan) |url=https://www.kommersant.ru/doc/124810 |title=Приобретение Kvaerner в России: Выборгский судостроительный завод стал норвежским |trans-title= Acquisition of Kvaerner in Russia: Vyborg shipyard became Norwegian |language=ru |work="Коммерсантъ" |date=18 January 1996 |access-date=5 August 2021}} Also during the mid 1990s, Kvaerner expanded its footprint in the Indonesian market, including through the formation of Kvaerner Bakrie Engineering in late 1995.{{cite web |url = https://www.offshore-mag.com/business-briefs/equipment-engineering/article/16762313/norway-in-indonesia-bakrie-link-bolsters-kvaerner39s-turnkey-oil-and-gas-capability |title = Norway in Indonesia Bakrie link bolsters Kvaerner's turnkey oil and gas capability |website = offshore-mag.com/ |language=en-GB |date = 1 November 1995}}

The company's expansive acquisitions quickly brought economic hardship to the company. Kjell Almskog became Kværner's CEO in 1998, and implemented various plans to streamline the company.{{cite web |url= https://nbl.snl.no/Kjell_E_Almskog |title=Kjell E Almskog, Industrileder |publisher= Norsk biografisk leksikon |first= Tore |last= Halvorsen |language=no |access-date= 25 March 2016}}{{cite web |url = https://www.nytimes.com/1998/10/28/business/company-news-kvaerner-to-sell-trafalgar-house-a-us-home-builder.html |title = Company News: Kværner to sell Trafalgar House, a U.S. home builder |publisher = Dow Jones |language=en-US |date = 28 October 1998}} This included the sale of the Cunard Line (a division of Trafalgar House) to Carnival Corporation,{{cite web |url = https://go.gale.com/ps/i.do?id=GALE%7CA115115699&sid=sitemap&v=2.1&it=r&p=AONE&sw=w&userGroupName=anon%7Ea1bc6140&aty=open-web-entry |title = Kvaerner plans Pounds 1bn assets sale; Cunard to go after Trafalgar falls to bid |publisher = The Times |language=en-GB |date = 5 March 1996}} the sale of Kvaerner Govan to BAE Systemshttps://www.chriscunard.com/qe2/qe2-history/ QE2 History | Cunard Archives, Trafalgar House Expansion and Decline. and the sale of Chemrec to Babcock Borsig. On 10 March 2000, Kvaerner sold the Vyborg Shipyard, which was losing money and faced closure during 1999, to the Sergey Zavyalov ({{langx|ru|Сергей Завьялов}}) associated with early 1990s established Ako Barss Group ({{langx|ru|"Ако Барсс Груп"}}) which sold the shipyard to Rossiya Bank owners who placed the shipyard in the United Shipbuilding Corporation (USC) in 2012.{{cite news |last=Шолмов |first=Константин (Sholmov, Konstantin) |url=https://www.dp.ru/a/1999/04/23/Norvezhskij_Kvaerner_upliv2 |title=Норвежский Kvaerner уплывает из Выборга: Выборгский судостроительный завод (ОАО "Квернер-Выборг Верфь") оказался под угрозой закрытия. |trans-title=Norwegian Kvaerner leaves Vyborg: The Vyborg shipyard (OJSC Kverner-Vyborg Shipyard) is under threat of closure. |language=ru |work=Деловой Петербург (dp.ru) |date=23 April 1999 |access-date=5 August 2021 |archive-date=6 August 2021 |archive-url=https://web.archive.org/web/20210806025000/https://www.dp.ru/a/1999/04/23/Norvezhskij_Kvaerner_upliv2}}{{cite news |last=Ершов |first=Андрей (Ershov, Andrey) |url=https://www.dp.ru/a/2000/03/20/Viborgskij_sudostroiteln2 |title=Выборгский судостроительный завод "приплыл" обратно в Россию: Петербургское ЗАО "АКО-Барсс" завершило переговоры о покупке Выборгского судостроительного завода (ОАО "Квернер Выборг Верфь"). |trans-title=Vyborg Shipyard "sailed" back to Russia: Petersburg JSC "AKO-Barss" has completed negotiations on the purchase of the Vyborg shipyard (JSC "Kverner Vyborg Verf"). |language=ru |work=Деловой Петербург (dp.ru) |date=20 March 2000 |access-date=5 August 2021 |archive-date=6 August 2021 |archive-url=https://web.archive.org/web/20210806025009/https://www.dp.ru/a/2000/03/20/Viborgskij_sudostroiteln2}}{{cite news |last1=Сологуб |first1=Александр (Sologub, Alexander) |last2=Горошков |first2=Павел (Goroshkov, Pavel) |last3=Мягченко |first3=Ольга (Myagchenko, Olga) |url=https://www.dp.ru/a/2015/11/17/Atomnij_sudostroitel/ |title=Топ-менеджер "Росатома" Сергей Завьялов встроил семейный бизнес в систему исполнения госзаказов |trans-title=Top-manager of Rosatom Sergey Zavyalov has integrated the family business into the system of execution of state order |language=ru |work=Деловой Петербург (dp.ru) |date=18 November 2015 |access-date=5 August 2021 |archive-date=6 August 2021 |archive-url=https://web.archive.org/web/20210806022853/https://www.dp.ru/a/2015/11/17/Atomnij_sudostroitel/}}{{cite news |url=http://www.compromat.ru/imgup/51189.jpg |title=Проекты, в которых участвует "Ако Барсс Груп" |trans-title=Projects in which "Ako Barss Group" participates |language=ru |work= |date=18 November 2015 |access-date=5 August 2021 |archive-date=6 August 2021 |archive-url=https://web.archive.org/web/20210806022902im_/https://img1.dp.ru/images/article/2015/11/18/946c169e-6fa4-4729-9d37-5fb86891e60d.jpg}} In August 2000, Kværner sold its Construction Division to the Swedish company Skanska.{{cite news |first=David |last=Litterick |title=Skanska buys Kvaerner arm for £180m |url=https://www.telegraph.co.uk/finance/4463572/Skanska-buys-Kvaerner-arm-for-180m.html |website=The Telegraph |access-date=11 December 2022 |language=en-GB |date=30 August 2000}}{{cite web |url = https://www.bridgeweb.com/Kvaerner-sells-off-construction-business-to-Skanska/56 |title = Kvaerner sells off construction business to Skanska |website = bridgeweb.com |date = 29 August 2000}}

The economic slowdown in 2001 coupled with the firm's heavy debt burden and a series of management missteps brought the company to the brink of bankruptcy. Hugo Erikssen, a director of public relations at Yukos, and Oleg Sheiko ({{langx|ru|links=no|Олег Шейко}}), Yukos' vice president for finance, and Alexey Golubovich ({{langx|ru|links=no|Алексей Голубович}}), who was Yukos' "director of corporate finance" until 2001, supported Kværner with mergers and financing.{{cite news |url=http://www.compromat.ru/page_11939.htm |title="Юкос" упорно старается смыть с себя репутацию "Менатепа": Как новые русские нефтяные короли построили тайную финансовую империю в Женеве. В начале 90-х годов, будущие миллиардеры руководили банком "Менатеп" |trans-title=Yukos strives hard to wash off Menatep's reputation: How the new Russian oil kings built a secret financial empire in Geneva. In the early 90s, future billionaires ran the Menatep Bank |language=ru |work=Le Temps |via=compromat.ru |date=21 June 2002 |access-date=5 August 2021 |archive-date=13 February 2020 |archive-url=https://web.archive.org/web/20200213000000/http://www.compromat.ru/page_11939.htm}} [https://rospres.site/forum/item/38159-kak-novye-russkie-neftyanye-koroli-postroili-taynuyu-finansovuyu-imperiyu-v-zheneve-v-nachale-90-h-godov-buduschie-milliardery-rukovodili-bankom-menatep Alt URL] [https://web.archive.org/web/20021126123107/https://inosmi.ru/full/149938.html Translated] at inosmi.ru from [http://www.letemps.ch/template/economie.asp?page=9&contenuPage=&article=92208&quickbar= "Le Temps"] on 21 June 2002.{{efn|Oleg Sheiko ({{langx|ru|Олег Шейко}}; born June 1957) graduated from the Faculty of Economics of Moscow State University in 1981 and the Academy of Foreign Trade in 1992 Following graduation he became a banker with NM Rothschild and Sons Limited in London and later created the Moscow branch and became its manager. He joined Yukos in 1996.{{cite web |archive-url = https://web.archive.org/web/20101218153225/https://www.vedomosti.ru/special/defendants.shtml |archive-date = 2010-12-18 |url-status = unfit |url = https://www.vedomosti.ru/special/defendants.shtml |title = «Дело Юкоса»: действующие лица и исполнители (The Yukos Case: Characters and Performers) |website = vedomosti.ru |language = ru}}}}

During the early 2000s, Kværner was approached multiple times by its long time rival Aker ASA, a Norwegian oil services group controlled by Kjell Inge Røkke.{{cite web |url = https://www.offshore-mag.com/home/article/16774433/kvaeligrner-rebuffs-aker-proposal-for-merged-operations |title = Kværner rebuffs Aker proposal for merged operations |website = offshore-mag.com |language=en-GB |date = 28 February 2001}}{{cite web |url = http://news.bbc.co.uk/1/hi/business/1294382.stm |title = Kvaerner down despite profit rise |publisher = BBC News |language=en-GB |date = 24 April 2001}} During November 2001, in order to avoid bankruptcy, Kværner was compelled to merge with Aker.{{cite web |url = https://www.theguardian.com/business/2001/nov/26/2 |title = Kvaerner collapse closer as merger is rejected |work = The Guardian |language=en-GB |date = 26 November 2001}}{{cite web |url = http://news.bbc.co.uk/1/hi/business/1680465.stm |title = Kvaerner saved from bankruptcy |publisher = BBC News |date = 28 November 2001}} Røkke scuppered the solution preferred by Kværner's management, which was a rescue by Yukos. Kværner's international headquarters returned to Oslo and Kværner was restructured to become a holding company, with operating activities concentrated in Aker Kværner and Aker Yards. During 2005, Kværner ASA was merged with Aker Maritime Finance AS, a wholly owned company of Aker ASA, as a result of which the Kværner corporation ceased to exist.{{cite web |url = https://www.akerasa.com/news/stock-exchange-releases/article/30069-implementation-of-merger-with-kvaerner-and-aker-dividend |title = IMPLEMENTATION OF MERGER WITH KVÆRNER AND AKER DIVIDEND |website = akerasa.com |language=en-GB |date = 1 December 2005}}{{cite web |url=https://nbl.snl.no/Kjell_Inge_R%C3%B8kke |title= Kjell Inge Røkke - Forretningsdrivende, Investor |publisher=Norsk biografisk leksikon |first= Trond |last= Smith-Meyer |language=no |access-date= 25 March 2016}}

During 2008, Aker Kvaerner changed its name to Aker Solutions ASA. In December 2010, Aker Solutions announced a decision to cultivate its core businesses; consequently, Kvaerner was established, through a demerger, as a specialised EPC (engineering, procurement and construction) company addressing the global market. On 6 May 2011, the shareholders' annual general meeting approved the establishment of Kvaerner as a separate company.{{cite web |url= https://snl.no/Aker_Solutions_ASA |title= Aker Solutions ASA |publisher= Store norske leksikon |first= Rolf |last= Bryhn |date= 29 September 2014 |language=en-GB |access-date= 25 March 2016}}{{cite web |url = https://www.offshorewind.biz/2014/04/30/aker-solutions-to-advance-its-business-by-creating-two-companies/ |title = Aker Solutions to Advance Its Business by Creating Two Companies |website = offshorewind.biz |language=en-GB |date = 30 April 2014}}

In 2015, it commenced fabrication of a 26,500 tonne steel jacket, the largest in Europe, for the Johan Sverdrup partnership.{{cite web |url = https://www.equinor.com/news/archive/2015/06/29/30JuneSverdrupSteel |title = Johan Sverdrup construction has started |website = equinor.com |language=en-GB |date = 29 June 2015}} Subsequently, Kvarner was awarded additional work on this scheme.{{cite web |url = https://www.equinor.com/news/archive/kvaerner-contract-johan-castberg-topsides |title = Statoil awards Kværner the contract for the Johan Castberg topsides |website = equinor.com |language=en-GB |date = 13 February 2018 }}

In September 2019, the company announced their plans to target renewable growth and that it was looking to expand its operations in renewable energy to help boost this growth by around 40% in the coming years.{{Cite web |url=https://renews.biz/55339/kvaerner-eyes-renewables-expansion/ |title=Kvaerner targets renewables growth |date=16 September 2019 |website=renews.biz |language=en-GB |access-date=16 September 2019}} One month later, it signed a contract valued at NOK 1.5 billion for Hywind Tampen, the world's largest floating offshore wind farm.{{cite web |url = https://www.akersolutions.com/news/news-archive/2019/kvaerner-contract-for-hywind-tampen-is-a-vital-strategic-break-through/ |title = Kvaerner contract for Hywind Tampen is a vital strategic break through |website = akerasa.com |language=en-GB |date = 31 October 2019 }}{{cite web |url = https://www.offshorewind.biz/2021/02/16/kvaerner-orders-slipform-systems-for-hywind-tampen/ |title = Kværner Orders Slipform Systems for Hywind Tampen |website = offshorewind.biz |first = Adrijana |last = Buljan |language=en-GB |date = 16 February 2021}} Separately, the company entered into a strategic collaboration with Nel ASA on green hydrogen projects, including the prospective development of large scale hydrogen production plants.{{cite web |url = https://news.cision.com/kvaerner-asa/r/nel-and-kvaerner-enters-into-strategic-collaboration-agreement,c3098249 |title = Nel and Kvaerner enters into strategic collaboration agreement |website = news.cision.com/ |language=en-GB |date = 4 March 2020}}

During July 2020, Aker Solutions announced major restructuring plans, centering on its merger with Kvaerner and the spinning off of its wind development and carbon capture and storage businesses into two separate Oslo-listed entities.{{cite web |url = https://www.energyvoice.com/oilandgas/252926/aker-solutions-to-take-over-kvaerner/ |title = Updated: Aker Solutions to merge with Kvaerner, cuts 200 UK jobs |website = energyvoice.com |first = Mark |last = Lammey |language=en-GB |date = 17 July 2020 }}{{cite web |url = https://www.offshore-mag.com/business-briefs/company-news/article/14183117/aker-solutions-kvaerner-reveal-merger-goals |title = Aker Solutions, Kvaerner reveal merger goals |website = offshore-mag.com |language=en-GB |date = 10 September 2020}}