Trelleborg, Sweden – Trelleborg AB has signed an agreement to divest its oil & gas operation in Norway, as part of a move to streamlining of core business.
The operation, which was catagorised as “businesses under development” in last year’s restructuring programme, is being bought by the current management together with a local partner, Trelleborg announced 29 April.
The transaction, the financial details of which were not disclosed, is expected to be finalised in the second quarter of 2021.
The operation mainly develops and manufactures rubber-based fire protection solutions and thermal insulation used in offshore oil & gas extraction.
According to president and CEO Peter Nilsson, the strategic review of the business unit at the end of 2019 made it clear that a divestment was “the best alternative” for this oil & gas operation.
Trelleborg has, however, emphasised that other parts of the group that develop, manufacture and sell products and solutions for the oil & gas industry, are in niches where it will want to continue its activities.
Those areas, according to Nilsson, mainly relate to safety-critical seals, hose systems, bearings solutions and various safety solutions for LNG.
The divestment follows Trelleborg’s sale of its offshore operation in Skelmersdale, in north west England, in early March.