(Direct translation of article)
Aiming for NOK 200 million in turnover, Connector Subsea Solutions sees a tenfold increase in two years.
Connector Subsea Distribution is investing millions in new production equipment to ensure further growth.
Increased demand for subsea equipment means that Connector Subsea Distribution is taking steps to grow further.
The company that supplies valves and couplings to the offshore industry is now investing over NOK 20 million in new production equipment. This will increase capacity and improve the delivery of ball valves and associated equipment and ensure further top line growth.
“We are experiencing an order rush the likes of which we have never seen before” says CEO Hallgeir Litangen at Connector Subsea Distribution.
Last year, Connector Subsea Solutions had a turnover of NOK 20 million. This year, a turnover of around 100 million is expected, and the goal for 2024 is to double this again.
“The market for the ground-breaking underwater technology that we supply is formidable. If everything goes as we plan, we will have a turnover of over NOK 200 million next year” says Litangen.
Connector Subsea Distribution is a subsidiary of Connector Subsea Solutions, which has its head office in Kokstad in Bergen.
After an acquisition of Fjell Subsea Products in 2018, Connector Subsea Solutions has invested millions in the development of subsea small-bore valves and connection systems. Last year, Norvalves in Ågotnes was also acquired.
“The market has welcomed the new technology” according to CEO Ivar Kjærvik Hanson of the parent company.
“We undoubtedly hit the “plan” with the acquisition of Ågotnes. The timing for the takeover of Norvalves and the product development we had carried out in Connector was perfect” says Kjærvik.
“There has been a boom in the market. The big customers have had problems getting hold of equipment, and there has been a lot of pressure on the prices of materials, although it may have calmed down a bit” Litangen adds.
The company supplies the entire global oil industry, and activity is particularly high in West Africa and Brazil. The customer list includes world-leading players such as Baker Hughes, OneSubsea, Aker Solutions and TechnipFMC.
Four times more
It is now being expanded with three new machines which will contribute to production running with a much higher capacity and better quality than with the old equipment.
“We expect to be able to produce four times as much with the new machines” says Litangen.
“More people will also be hired. Today, Connector Subsea Distribution has 25 employees, but six new positions are to be filled in the near future.”
“The valve systems that Connector Subsea Distribution has developed and now manufactures reduce both material consumption and weight by up to 70%” according to Litangen. This leads, among other things, to a significant reduction in CO2 emissions.
The components are put together using electron beam welding, which should reduce the dimensions of the equipment significantly.
“When the weight of the equipment can be reduced by almost three quarters compared to the competitors, it gives the operators significantly lower costs for, among other things, installation vessels and cranes when a large number of valves, systems and modules are to be transported and installed on the seabed” explains Litangen.
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