The restructuring of Fortum's power plant engineering unit has largely been completed. A new, as yet unnamed joint venture between Fortum and Pohjolan Voima will be formed to acquire the shares of Fortum Engineering Ltd and Empower Engineering Oy, the power plant engineering subsidiaries of the two groups. The new company will also take over most of Fortum's power plant engineering business. Fortum and Pohjolan will each own minority stakes of 40 per cent, with the balance to be sold to other engineering companies. The initial transaction will be cash flow-neutral to Fortum.
The new company will start operations at the beginning of 2003, depending on the approval of the authorities. It will specialise in energy related consulting and engineering services to energy companies, utilities, energy intensive concerns and power plant investors. "With these arrangements the power plant engineering businesses will have the critical mass ... to fully utilise their market opportunities" said Eero Auranne, president-to-be of the new organisation.
The company's entire boiler business is to be acquired by Aker Kvaerner. It will become part of the Power division of Kvaerner's Pulp and Paper business area, subject to competition authority approval. Included in the deal is Fortum's bubbling fluidised bed technology, and the BioMAC trademark, patents and rights.
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