IHI buys Kvaerner US downstream engineering unit
Kvaerner on Thursday agreed sell the downstream-focused operations and related assets of EPC Center Houston to a US subsidiary of Japanese joint venture partner IHI Corp.
Kvaerner retains and will further develop all of its other businesses in North America, the company said.
Those businesses include the Houston-based Kvaerner Field Development business, which is focusing on offshore field development projects, and Kvaerner North American Construction, which provides construction services and maintenance in the unionized areas of North America.
Kvaerner did not disclose terms of the sale, which is expected to close in the 2012 third quarter.
All rights and obligations under contracts for executed projects will be retained by Kvaerner, the company said.
On the whole, the EPC Center Houston is an engineering and construction business focused on the delivery of LNG terminals and oil and gas processing facilities in North America.
Since 2004, the center and IHI have cooperated as joint venture partners on several projects, officials noted, thus enabling a smooth transition.
The new company comprises 170 employees including contract personnel, and it will continue to be based in Houston.
"We are pleased to see that our joint venture partnership on several major projects in North America has enabled the establishing of a new organization, positioning itself for further growth", said Jim Miller, executive vice president for the downstream business in Kvaerner.
The new company will be called IHI E&C International (IHI E&C).
“Kvaerner EPC Center Houston has been in a successful joint venture with IHI on major projects throughout North America for many years,” said IHI E&C president Glyn Rodgers.
“We are pleased and honored to join forces through this acquisition, and look forward to bringing the added depth and breadth of products and services to our customers.”
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