Wärtsilä to divest Wärtsilä Tank Control Systems to Svanehøj

Wärtsilä Tank Control Systems designs, manufactures, sells and services high-end measurement systems for gas tanks on LNG ships, offshore storage, and land-based LNG terminals. Tank Control Systems is also a leading supplier of safety products and associated systems and solutions for LPG land-based storage and underground cavern storage.

The acquisition of Wärtsilä TCS, historically known as Whessoe, brings Svanehøj unique skills in the production, sale, and service of high-end measurement systems for gas tanks on LNG ships and land-based LNG facilities.

The acquisition of Wärtsilä TCS opens new, exciting opportunities for Svanehøj’s rapidly growing service business, which has almost tripled its revenue since 2018. Svanehøj is already a leading provider of cargo system service for LPG vessels, and the intention is to use the acquisition to achieve a similar position within the larger LNG ship segment.

“With this acquisition, Svanehøj will now be the preferred service provider for about 500 LNG vessels with tank measurement systems from Wärtsilä TCS. Once on board, it will be attractive for many customers to consolidate their service jobs and make use of our competencies within servicing pumps, compressors, valves, and instrumentation,” says Morten Christian Larsen, Director, Service & Aftersales, at Svanehøj.

With the acquisition, he will lead a service department with more than 70 employees and activities in Denmark, UK, China, and Singapore. With an expected increase in activity of initially 30-40%, the plan is to employ additional staff to support the offices in Denmark and Singapore.

New land-based division based in France

As part of the acquisition of Wärtsilä TCS, a new independent business for land-based activities will be established. The business will be based in Calais, France, from where Wärtsilä TCS currently produces measurement systems for land-based LNG systems.

“Land-based business has not been a focus area at Svanehøj up until this point. But it is a strong complement to our existing business as it supports our purpose of contributing to a cleaner world. And there is no doubt that the need for gas systems and solutions will increase both on land and at sea in the coming years, says Søren Kringelholt Nielsen.

The acquisition of Wärtsilä TCS is Svanehøj’s second in less than eight months. In November last year, Svanehøj took over the service specialist FORCE Technology Marine Equipment Service. Following the most recent acquisition, Svanehøj Denmark employs approximately 230 people and has activities in Denmark, the United Kingdom, France, Singapore, China, and Japan.

Closing of the transaction is subject to fulfilment of closing conditions.