World News
Major Marine Scrubber Player Expects Sales to Double in 2019
Yara International, one of the world's top three scrubber manufactures, says it expects sales of its exhaust gas cleaning systems (EGCS) to double in 2019 compared to the NOK 700 million ($84.7 million) predicted for 2018.
As expected, Yara sees the main driver for growth being ship owners and operators preparing for the IMO 2020 global 0.50% sulfur cap for marine fuel, with the new rule entering into force from January 1, 2020.
But Yara may also cash in on the current bullish outlook for scrubbers, and says it is mulling a potential sale of its Yara Marine Technologies (YMT) business.
"Entering the next growth phase for YMT, it is natural to consider whether a new ownership structure may be the best way forward both for Yara and YMT," says Svein Tore Holsether, President and Chief Executive Officer of Yara International ASA.
"Yara has a long history of adjusting its portfolio when the conditions are right, most recently with the divestments of GrowHow UK in 2015 and the CO2 business in 2016. We will continue to evaluate both acquisition and divestment opportunities based on their value creation potential."
The company stressed it has yet to make a decision on the matter, and the YMT business "is performing strongly."
Yara formed YMT after acquiring Green Tech Marine in 2014.
According to Goldman Sachs data, Wartsila, Alfa Laval, and Yara currently represent 75% of the marine scrubber market.
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