Bergen Engines

History

2022: Resumption of supply of parts for repair of gas turbines in Russia

In November, the Norwegian company Bergen Engines resumed deliveries to Russia of parts for the repair of gas turbines. Earlier, deliveries were suspended after the start of Russia's special operation in Ukraine.

2021

Norwegian authorities ban on the sale of Bergen Engines to Transmashholding

The authorities Norway banned "" To Transmashholding(TMH International) from buying Rolls-Royce Bergen Engines from the engine plant. This was announced on March 23, 2021 by the Minister of Justice Norway Monica Malann.

The government believes that national security interests could be at risk if ownership of the Bergen Engines plant is transferred from Rolls-Royce to TMH, the Norwegian government press service quoted Malann as saying.

According to her, the resolution to stop the sale is adopted in accordance with the safety law.

Norwegian authorities ban Transmashholding from buying engine factory from Rolls-Royce

We have enough information to conclude that it is necessary that national security interests are not threatened, that we prevent the sale of the plant to a company controlled by a country with which we have no cooperation in the field of security, "Malann explained.

The Norwegian government said in a statement that "the technologies possessed by Bergen Engines and the engines they produce would be of significant military-strategic interest to Russia and would increase Russia's military potential."

After the introduction of European sanctions in 2014, Russia faced difficulties in accessing such technologies, says Monica Malann. Thus, according to her, a deal to acquire Bergen Engines would lead to an attempt to bypass export control rules and weaken the current restrictive measures.

In addition, the head of the Ministry of Justice mentioned the strategic location of Bergen Engines. When buying the TMH plant, Russia would have gained access to Bergen and defense facilities that are important for the security of Norway and its allies.

The government informed Rolls-Royce of its decision on 18 March 2021. The company agreed with him and began looking for a new buyer for the plant.^[1]

Transmashholding announced the purchase of Bergen Engines

On February 4, 2021, the largest manufacturer of railway equipment in Russia announced the purchase of an engine plant in Norway from Rolls-Royce. We are talking about the Bergen Engines enterprise, which manufactures diesel and gas piston medium-speed engines. Rolls-Royce said the net proceeds of the deal would be €150m.

Bergen Engines consists of:

• metalworking and assembly production facilities;
• high-precision casting shop;
• repair shop and design bureau;
• service centers in seven countries.

Transmashholding acquired Bergen Engines

From its foundation in 1946 to the beginning of 2021, the Bergen Engines plant delivered more than 7,000 engines to customers, of which 5,000 are in operation. Bergen Engines employs about 950 people (data as of February 4, 2021).

It is noted that gas piston medium-speed engines are designed for use in autonomous energy systems that provide energy supply to small settlements or large enterprises. Through the transaction, TMX expects to expand the holding's presence in the world diesel market. Bergen Engines as part of TMH will operate as an independent company. It is planned to close the deal in the second half of 2021.

It is expected that the synergy of the engineering and production competencies of the Norwegian enterprise and the Russian diesel construction sites of Transmashholding will accelerate the implementation of a strategy for the development of technologies with a zero carbon emissions balance, the Russian company said in a statement.

By the beginning of February 2021, Transmashholding includes 17 Russian factories producing passenger and freight electric locomotives and diesel locomotives, freight and passenger cars, cars for suburban trains and metro, as well as diesel engines for locomotives and generators and other railway equipment.^[2]

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