Aker Kvaerner to make significant investment in Tranby manufacturing facility

10 Feb 06, Aker Kvaerner intends to invest NOK 65 million to develop its world-class Tranby manufacturing operation into the most efficient subsea tree manufacturing facility in the world. The new streamlined operations will increase Aker Kvaerner’s ability to respond to customer needs with reduced lead times, more rapid execution and new subsea boosting products; and demonstrates the company’s commitment to grow its subsea business.

“This investment positions our manufacturing resource base for future growth and will give us additional supply and testing flexibility across a range of products and services. Tranby will become the world’s most efficient subsea tree and pump manufacturing plant,” says Svenn Ivar Fure, senior vice president operations, Aker Kvaerner Subsea

Aker Kvaerner Subsea is a leading supplier of subsea tree systems, a device used to control flow from subsea oil and gas wells. The incremental investment in new machining technology and a new subsea tree assembly line will expand subsea tree production capacity by 25 per cent and increase manufacturing efficiency. The addition of a dedicated subsea pump assembly and testing facility will enable the company to grow within the emerging subsea boosting market.

Aker Kvaerner is also establishing a new NOK 250 million high technology manufacturing centre in Kuala Lumpur, Malaysia, to be operational in late 2006. The upgraded Tranby facility will be an important training ground for Malaysian employees in preparation for operation of the new Malaysian facility.

“The scope and scale of our investments in manufacturing helps Aker Kvaerner maintain industry leadership, drive innovation and be at the forefront of health, safety and environmental care,” says Raymond Carlsen, executive vice president, Aker Kvaerner Subsea.

Since the 1970s, Tranby has been transformed from its origins as a multi-purpose mechanical engineering plant to a modern production facility with focused activities in manufacturing, assembly and testing of subsea and pumping equipment.

The Tranby facility employs approximately 500 people and supplies equipment for clients including Statoil, Total, BP, Murphy, Shell, Marathon and Norsk Hydro, among others. Aker Kvaerner has other manufacturing and testing facilities in Ågotnes and Moss, Norway; Curitiba, Brazil; Mobile and Houston, USA; Batam, Indonesia; Perth, Australia and Aberdeen, Scotland.

ENDS

For further information, please contact:

Investor relations:
Lasse Torkildsen, Vice President, Aker Kvaerner, Group Comms. Tel: +47 67 51 30 39

AKER KVÆRNER ASA, through its subsidiaries and affiliates (“Aker Kvaerner”), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. The Aker Kvaerner group is organised into two principal business streams, namely Oil & Gas and E&C, each consisting of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities.

The parent company in the group is Aker Kværner ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 35.6 billion and employs approximately 22,000 people in more than 30 countries.

Aker Kvaerner is part of the Aker Group (www.akerasa.com), a leading multi-industry powerhouse with more than 40 000 employees and NOK 60 billion revenues. Aker owns 50.01 per cent of Aker Kvaerner, and the group is also a major European shipbuilder and a significant participant in the fisheries industry.

Aker Kvaerner Subsea is a leading provider of a complete range of surface and subsea solutions for the oil and gas industry - from concept screening and design through manufacturing, fabrication and commissioning. Aker Kvaerner Subseas’ ability as a world-wide total system provider is backed by a wide portfolio of products which are maintained for the complete life of field. Aker Kvaerner Subseas’ capability is available for both new and existing fields either as individual activities or complete packages.

Eureka Pump Systems, as part of Aker Kvaerner Subsea, has extensive project, engineering and production resources offering specialised pumping technology and products to the offshore, FPSO and subsea markets world wide. Eureka Pump Systems also serves the global subsea market with a complete range of Subsea Boosting products.

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com

Contact Information

Renee Mead

Communications Manager

Aker Kvaerner Subsea

Contact via E-mail