Subsea 7 Announces Review of Strategic Alternatives for NKT Flexibles
Since 1999 NKT Flexibles has been operated as a joint venture between NKT Holding (51%) and Subsea 7 S.A. (49%). During this period the Company has developed a product offering including dynamic and static risers, static flow-lines, subsea jumpers, topside jumpers and expansion joints.
The Company enjoys a strong reputation in the industry as being a highly innovative supplier and has completed over 200 projects worldwide in all key offshore markets including Brazil, the North Sea, West Africa, India, Australia and the Far East.
Medium-term NKT Flexibles is expected to further strengthen its position as a leading manufacturer in the industry for flexible pipes. This is supported by NKT Holding announcement No. 9 dated 30 May 2011 regarding significant order intake. In order to meet customer demands, NKT Flexibles has initiated the construction of a dedicated flexible pipe plant in Brazil, expected to be ready for commercial operation during 2013.
This achievement matches the vision set out when forming the joint venture 12 years ago. The Boards of NKT Holding and Subsea 7 S.A. therefore have decided to initiate a formal process to explore strategic alternatives for the future development of NKT Flexibles. The aim is to confirm whether or not the current owners are best owners to undertake such a development.
NKT Holding and Subsea 7 S.A caution that the strategic review is ongoing and that this combined with the conditions in the financial markets imply that there is no assurance that the process will result in any specific action and that no firm timetable has been set for the completion of the process.
Source: Subsea 7, September 20, 2011; Image: NKT Flexibles