02.04.2008

Norwegian crane merger

Norway’s Kynningsrud and Stangeland Group’s have agreed to merge their two crane rental businesses- Krnningsrud Kran and Stangeland Kran into a jointly held company the Nordic Crane Group
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Harald Kynningsrud and Olav Stangeland cement the deal

The two crane companies will continue to trade under their own names and management. Kynningsrud is primarily positioned within the construction, wind and petro-chemical markets in the eastern part of Norway and in Sweden.

Stangeland has its strength within the oil & gas market as well as construction and industrial projects along the coast of Norway.

With almost 300 mobile cranes, ranging from 20 to 600 tonnes capacity, between them. The two companies claim that the combined business will be the largest crane company in Scandinavia.

In Norway the merged company will operate along the entire coast of Norway – from Halden in the southeast to Hammerfest in the north, while in Sweden the company will have its main activity in the south and centre of the country.

The combined group will have 375 employees and is anticipating a revenue of NK 650 million (€81 million) for 2008.

Harald Kynningsrud and Olav Stangeland said in a joint statement: “The establishment of Nordic Crane Group is an important strategic step in further enhancing the relationship with our clients. A joint depot and organisation will increase execution capabilities and the capacity to serve both new and existing clients. In addition scale benefits will drive cost improvements.”

The co-operation includes only the crane business, Kynningsrud also has a prefabricated concrete and a foundation division, while Stangeland is into earthmoving equipment and contracting, and has interests in a number of other companies. These other businesses are unaffected by the agreement.