Optimizing and focusing the portfolio
Positioned Volue for further growth: Arendals Fossekompani took Volue off the Oslo stock exchange together with Advent International and Generation Investment Management. As part of this transaction Arendals Fossekompani reduced its ownership in the company from 60% to 40% thereby realizing net cash proceeds of NOK 1 billion.
“The ongoing energy transition presents substantial growth opportunities for Volue. Together with Advent and Generation we have now established a long-term partnership that will enable the company to achieve its ambitious goals to capture these opportunities. We are confident our joint strategic ownership will contribute significantly to accelerate Volue’s growth and value creation,” says Golding.
Sold Vergia and discontinued battery investment: Arendals Fossekompani sold its renewable development company Vergia to Swiss Life Asset Managers. During the year Arendals Fossekompani also decided to cease investment in battery company Commeo due to increasing cost disadvantage of European production, prolonged sales delays, and a challenging market. This resulted in an impairment of Arendals Fossekompani’s position.
“The discontinuation of our battery strategy and the divestment of Vergia are measures Arendals Fossekompani have made to focus, de-risk and optimize our portfolio, while reducing exposure to capital intensive businesses in line with strategy.” says Golding.
Improving and developing our operations
NSSLGlobal renewed and secured contracts: NSSLGlobal’s bid pipeline, sales and profitability remained strong throughout the year and the company landed significant new business across both the government and maritime sectors. During the year NSSLGlobal has continued to expand its efforts in maritime and governmental projects providing secure connectivity through GEO and LEO satellite communication together with customized hardware and software solutions for critical operations as well as for crew welfare. In 2024, the company also celebrated its 55th anniversary and is continuously developing to adapt to the dynamic and rapidly evolving market.
ENRX turned up the Heat: ENRX has in 2024 seen a continued strengthening of the Heat business, including the opening of a new factory in Poland. On the Charge side, ENRX has continued the project to provide Florida's first high power 200 kW electrified roadway, with the first step of establishing a test track. The Charge R&D organization has been expanded, and ENRX entered into an agreement with InductEV to standardize wireless charging technology.
Tekna focused on profitability: Tekna has implemented a profitability improvement program as well as several cash preservation measures during the year. Carefully managing costs and cash position remains an important focus for the company. After completing a comprehensive program to increase powder production capacity, Tekna has set new production records during the year. In 2024, the company also announced that the most advanced PlasmaSonic Wind Tunnel ever built was successfully delivered to a leading aerospace OEM.
Alytic hired three new CEOs: Alytic has continued to provide hands-on support in strategy, leadership, sales, recruitment, HR, data science and technology to its portfolio companies. This year, the company strengthened their portfolio’s leadership teams with the hiring of three new CEOs: Monical Vaksdal for Utel, Kjetil Angell Kjerstad for Kontali, and Henrik Halvorsen for Factlines.
Increased resources: This year we have strengthened our team and hired a valuable resource to ensure compliance with future CSRD reporting requirements. Arendals Fossekompani is pleased to welcome Sustainability and Compliance Officer, Sophie Barbier, to assist with ESG integration, strategy development, reporting and disclosure, and audits and assessments.
Creating value locally
Building new hydropower: The construction of our new hydropower plan Kilandsfoss has progressed according to plan during the year. The plan is located in the river Nidelva, between Arendals Fossekompani’s two existing hydropower plants. When in production it will produce 38 GWh per year, equivalent to the energy consumption of approximately 2,000 households. Kilandsfoss hydropower plant is scheduled to start production of electricity in 2026 providing renewable energy for generations.
Building new production facility for Kitron Arendal: The building will be approximately 7,500 square meters will be located at Longum Næringspark, allowing Arendals Fossekompani support industry growth in the region while capitalizing on its existing property. Construction began in the fall of 2024, and the facility is planned to be taken over by Kitron in the spring of 2026.
“For AFK Property, this is an exciting partnership that will contribute to attractive growth in our region. We are pleased to develop the project for Kitron at an important location for production and industry,” says Tom Krusche Pedersen, Property Manager for AFK Eiendom.
Giving back to the community: In 2024, Arendals Fossekompani supported over 40 various activities and initiatives in the region. Since 1896, we have contributed to building local societies. In 2024, Arendals Fossekompani supported activities and initiatives such as Arendalsuka, TEDxArendal, Gamestreet House, and ØIF Handball.
“We are proud to support the local community and contribute to positive development in and around Arendal. 2024 has been filled with rewarding initiatives and collaborations. This is a huge source of pride in our company and we’re looking forward to creating new partnerships and continuing our influence in 2025,” says Hanne Watts, VP of Communication and Sustainability.
With over a century of industrial development experience, our investment approach leverages our strengths. We create value through strategic use of our capital, expertise and network. We always strive to improve and look forward to continuing to do so in the year to come.