RNS Number:5352X
Kvaerner ASA
19 January 2001


Kvaerner considers change in structure

LONDON, 19 JANUARY 2001:  At its meeting today, the Board of Kvaerner, the
Anglo-Norwegian engineering and construction Group, discussed restructuring
opportunities presented by the Group Management.  Among the actions being
considered, is a split of the Group's activities into separate, independent
companies in order to further sharpen management focus and level of
specialisation.  Such a split would add strength to the efforts to achieve
further operational improvements in the core businesses, and at the same time,
facilitate an exit from the remaining non-core activities in a way and pace
that would secure best value for shareholders.  
In the spring of 1999, Kvaerner initiated a comprehensive plan for a strategic
re-direction of the Group.  This involves a series of fundamental, structural
changes in order to create a company with a clear focus on two core business
areas going forward: Oil & Gas and Engineering & Construction.
Since the restructuring plan was introduced, more than 30 businesses have been
sold or closed.  Furthermore, overhead costs have been reduced by more than
NOK 2 billion per year, net interest bearing debt has been reduced by some NOK
6 billion, or 50 per cent, and the Group is again profitable.
Going forward, the priority will be to develop further growth and improved
profitability in the core business areas.  Additionally, it remains for the
disposal of the Pulp & Paper activities to be executed, as well as the three
last shipyards, some mechanical fabrication activities, and a number of
minority shareholdings.  
The Board has asked the Group Management to continue the evaluation of the
various restructuring opportunities.  


For further information:Paul Emberley, Vice President Group Communications,
Kvaerner ASA : +44 (0)20 7339 1035 or +44 (0)7768 813090
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