Norden expands into wind energy and breakbulk markets with acquisition of Thorco Projects

Danish shipping company Norden has reached an agreement to acquire Thorco Projects, a company specializing in breakbulk segments such as breakbulk, steel and wind energy.

This strategic move marks Norden’s expansion into new markets, including the wind energy segment, which is a growing sector due to increased investment in renewable energy. As the global transition to cleaner energy sources gains momentum, wind energy projects are becoming more important.

The acquisition of Thorco Projects enables Nordern to enter this market and benefit from the transport of wind energy-related cargo, thereby diversifying its revenue streams.

The two companies have complementary business models. Norden’s expertise in operating handysize vessels combined with Thorco Projects’ capabilities in handling specialized general cargo creates synergies that can increase operational efficiency and profitability.

Expansion into the wind energy segment and offering enhanced global service for non-containerized cargo types may strengthen Norden’s market positioning. As the industry moves towards more sustainable practices, presence in segments related to renewable energy can give NORDEN a competitive advantage over its peers

In recent times, Thorco Projects has evolved into an asset light company, operating primarily a chartered fleet of handy size vessels. This fits well with Norden’s existing asset-light business model and makes the acquisition a natural fit for the company’s Freight Services & Trading unit. The integration of Thorco Projects is expected to be positive for Norden’s margins.

Jan Rindbo, CEO of NORDEN, was enthusiastic about the takeover and explained: “We look forward to welcoming the Thorco Projects team to Norden and offering our customers an enhanced global service for all non-containerized cargo types.”

Rindbo also highlighted the significant growth potential that Norden sees in expanding the Thorco Projects business under its brand.

Thorco Projects specializes in handling specialized general cargo, consolidating multiple cargo packages from different customers into single shipments on multipurpose and handysize vessels. Established in 2003, the company has a fleet of approximately 44 chartered, diversified multi-purpose and bulk carriers.

“We look forward to further developing our collaboration with our current and future customers. We also welcome this opportunity to expand our cooperation with NORDEN, which we believe can further strengthen and expand the project business.” Thorco Projects CEO Thomas Mikkelsen said.

In addition to the strategic advantages, the acquisition also offers commercial synergies between the two companies. The intersection of Thorco Projects’ fronthaul routes and the north’s backhaul routes offers opportunities to optimize trade routes. This optimization is expected to also reduce emissions in the supply chain for customers, in line with the industry’s growing focus on sustainability.

The acquisition is subject to regulatory approval and is expected to close in the third quarter of 2023.

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