Pump manufacturer Svanehøj reports that a significant expansion of its presence in China is showing results.
In just a few months, the company has landed two major product and chemical tanker pump orders from Chinese shipbuilders, including a recent contract from Guangzhou Shipyard International Company Limited (GSI) for a total of 96 deepwell pumps for four new MR Tankers.
Danish-based Svanehøj, a specialist in deepwell pumps for marine and offshore has manufactured pump systems for product and chemical tankers for decades, but the segment is now becoming a significantly larger part of its business and its has a target of increasing sales of cargo pumps in this sector by 40% over the next three years.
The order from GSI is its largest since 2005. The shpyard is to build four 49,900 DWT MR Ttankers for White Whale Shipping. A few months ago, Svanehøj was chosen by Cosco Dalian Shipyard as the pump supplier for two similar tankers.
Although the global construction of new ships is at its lowest level for several years, Svanehøj is showing strong growth. The company has just released its 2020 annual report with a revenue of $62 million against $46 million in 2019. Profit has increased from $2 million to $9 million before tax.
“We are experiencing an extremely good order intake and can already see that we’re headed for an even better result in 2021,” says Svanehøj CEO Søren Nielsen.
Sales of Svanehøj’s patented DW fuel pump for liquified gas has tripled in 2020, and expectations are for significant growth to continue in coming years.
“After a few years of historically low activity in the market, the marine industry is anticipating several years of high growth. And there’s no doubt that this will give a further boost to the transition from oil to gas,” says Nielsen.