Alfa Laval completes acquisition of innovative friction reduction technology

Rhea-AI Summary

Alfa Laval has successfully acquired a 100% stake in Marine Performance Systems (MPS), following a minority investment in 2021. The closing date for this acquisition was March 21, 2023. MPS specializes in innovative air lubrication technology that significantly reduces hull friction, leading to fuel savings of 50-70%. This technology directly addresses fuel costs, which constitute up to 60% of a vessel's operational expenses and helps reduce greenhouse gas emissions. Alfa Laval aims to enhance process efficiency and promote more sustainable practices.

Positive

• Acquisition of MPS strengthens Alfa Laval's position in fuel efficiency technology.
• MPS technology can lead to substantial fuel cost savings and reduced emissions for vessels.
• The patented air lubrication solution can be retrofitted on existing ships.

Negative

• None.

LUND, Sweden, March 22, 2023 /PRNewswire/ -- In 2021, Alfa Laval acquired a minority stake in the Netherland-based company Marine Performance Systems (MPS) with an option to acquire the remaining part later. Now Alfa Laval has executed that option and completed the acquisition to own 100 percent of MPS. The closing date for the acquisition was 21 March 2023. MPS' innovative technology significantly reduces the friction from vessels when sailing, resulting in fuel savings.

Friction between the hull and the water when sailing is the most significant driver of a vessel's fuel consumption, and the cost of fuel represents up to 60 percent of a vessel's operating costs. Fuel consumption has a direct impact on greenhouse gas emissions, as reducing 1 ton of fossil fuel consumption equals the reduction of approximately 3 tonnes of CO2 emissions.

Marine Performance Systems' air lubrication technology generates micro bubbles under a ship's hull, reducing friction between the vessel and the water by 50-70 percent and enabling substantial fuel cost savings and improvement in overall ship efficiency, during normal service speed. The technology was first tested on a sea-going vessel in 2020 and the fuel savings have been confirmed by the shipowner based on several months of operation.

The patented solution can be installed on vessels of any size or fuel type at point of building or retrofitted on already operating vessels.

This is Alfa Laval

Alfa Laval is a world leader in heat transfer, centrifugal separation and fluid handling, and is active in the areas of Energy, Marine, and Food & Water, offering its expertise, products, and service to a wide range of industries in some 100 countries. The company is committed to optimizing processes, creating responsible growth, and driving progress to support customers in achieving their business goals and sustainability targets.

Alfa Laval's innovative technologies are dedicated to purifying, refining, and reusing materials, promoting more responsible use of natural resources. They contribute to improved energy efficiency and heat recovery, better water treatment, and reduced emissions. Thereby, Alfa Laval is not only accelerating success for its customers, but also for people and the planet. Making the world better, every day.

Alfa Laval has 20,300 employees. Annual sales in 2022 were SEK 52.1 billion (approx. EUR 4.9 billion). The company is listed on Nasdaq Stockholm.

www.alfalaval.com

For more information please contact:
Eva Schiller
PR Manager
Alfa Laval
Tel: + 46 46 36 71 01
Mobile: +46 709 38 71 01

Johan Lundin 
Head of Investor Relations 
Alfa Laval  
Tel: +46 46 36 65 10 
Mobile: +46 730 46 30 90

The following files are available for download:

https://mb.cision.com/Main/905/3738438/1932989.pdf

PR_MPS_230322_ENG_G

View original content:https://www.prnewswire.com/news-releases/alfa-laval-completes-acquisition-of-innovative-friction-reduction-technology-301778368.html

SOURCE Alfa Laval

FAQ

What is the significance of Alfa Laval's acquisition of Marine Performance Systems (MPS)?

The acquisition enhances Alfa Laval's capabilities in fuel efficiency technology, reducing operational costs and emissions for maritime vessels.

When did Alfa Laval complete the acquisition of MPS?

Alfa Laval completed the acquisition on March 21, 2023.

How does MPS's technology benefit vessel operations?

MPS's air lubrication technology can reduce hull friction by 50-70%, resulting in significant fuel savings and improved vessel efficiency.

What are the expected environmental impacts of this acquisition?

The acquisition is expected to lower greenhouse gas emissions by decreasing fuel consumption, aligning with sustainability goals.

What does the acquisition mean for Alfa Laval's future growth?

By integrating MPS's technology, Alfa Laval can expand its market presence and offer innovative solutions that enhance energy efficiency in the maritime sector.