Marine Log

June 23, 2006

Aker Yards enters chemical tanker market

Aker Yards has signed an agreement with Kleven Maritime to acquire Kleven Floro AS, and Kleven Design AS. Both entities are located in Floro, Norway.

Kleven Floro and Kleven Design specialize in the in design and construction of chemical tankers, and have a unique production competence using stainless steel.

Aker Yards says the acquisition strengthens its Merchant Vessels Business Area by adding a product range of highly specialized chemical tankers, meeting customer demand and new regulatory requirements.

The previously announced joint venture with Damen Shipyard Group in Ukraine creates an opportunity for Aker Yards to develop a new highly competitive line of chemical carriers in combination with Kleven tanker knowhow.

Aker Yards has agreed to acquire Kleven Floro and Kleven Design at a price of NOK 60 million including debt, based on a working capital of zero. In addition there will be further payments based on performance on existing order backlog and new orders in the coming three years.

The order intake part of the payments is capped at NOK 36 million.

Kleven Floro has approximately 300 employees, and there are 30 engineers at Kleven Design.

The turnover of Kleven Floro and Kleven Design was NOK 350 mill in 2005. The orderbook today consists of one juice tanker and two chemical tankers at a total value of approximately NOK 1.3 billion.

By joining Aker Yards, the Kleven Floro yard will capitalize on a long term, and predictable ship hull supply from Aker Yards capacity base in Eastern Europe.

Karl Erik Kjelstad, President & CEO of Aker Yards states in a comment: "The acquisition of Kleven Floro combined with the joint venture with the Damen Shipyard Group in Ukraine gives us a unique position as a competitive supplier of highly specialized tankers."

Kjersti Kleven, Chairman of Kleven Maritime adds: "I am very pleased that Kleven Floro and Kleven Design as a part of Aker Yards will have owners that can capitalize on the unique competence and potential that has been developed over decades in Flor┐. "

Steinar S. Kulen, President of Kleven Maritime, will from the date of closing of the transaction head Aker Yards chemical tankers activities, including the activities in Floro, and will be appointed Deputy President for the entire Merchant Vessels business area.

The transaction is subject to approval of Norwegian competition authorities and closing of the transaction with Damen Shipyard Group.