Siemens Positions for Growth In Subsea Power Grid Market

Siemens is acquiring the Connectors and Measurements Division of Expro Holdings UK, a company specializing in the oil and gas industry. The unit engineers and manufactures subsea components such as cable connectors, sensors and measuring devices under the trade names Tronic and Matre. Siemens says this equipment forms a crucial part of the power grid that Siemens is currently developing for use on the sea bed at depths of down to 3,000 meters.

In the calendar year 2011, the Expro division booked sales of about 90 million euros and currently has a workforce of about 450 in the United Kingdom, Norway, the United States, Brazil and Malaysia. The purchase price is around 470 million euros. The transaction is conditional upon approval by anti-trust authorities.

This acquisition, brings Siemens one step closer to its goal of becoming one of the leading providers of subsea power grid and distribution solutions, according to a prepared statement by CEO of the Oil & Gas Division at Siemens Energy, Adil Toubia. Siemens believes deep-sea applications will be one of the fastest-growing market segments within the oil and gas industry with market volume expected to reach 2 billion euros by 2020.

Subsea power grids will serve various power consumers such as compressors or pumps operating in the deep sea. Siemens says the portfolio of Expro encompasses electrical connectors that enable both power transmission and communication on subsea installations, as well as a range of temperature and pressure sensors for subsea use.

The Expro acquisition follows Siemens’ March 2011 acquisition of two Norwegian companies Bennex and Poseidon, with expertise in subsea power distribution systems, marinization, and general subsea engineering. As part of its power grid development program, Siemens last year opened a technology and test center for subsea equipment in Trondheim, Norway. Over the next few years Siemens, building on its subsea base in Norway, says it intends to expand its own subsea activities, also offering its full product range in Houston, Rio de Janeiro and Singapore.