Berg Propulsion reorganises after Caterpillar purchase

Stefan Sedersten, CEO Berg Propulsion (Image: Berg Propulsion) Stefan Sedersten, CEO Berg Propulsion (Image: Berg Propulsion)

After closing a deal on 30 June to buy Caterpillar Propulsion AB and re-establish Berg Propulsion, the company announced plans to consolidate its manufacturing in Sweden.

The plans, announced by CEO Stefan Sedersten, will make its manufacturing and R&D departments neighbours.

At present, its products are made both in Sweden and Singapore and Mr Sedersten said in a statement issued on 6 July that the move will enable increased warehouse capacity for spare parts and swing units. The move is due to be completed this year with further investment in assembly and warehouse capacity taking place at the same time so as to be ready by the beginning of 2021.

Berg Propulsion’s senior managers see this warehousing as a significant benefit, as its after sales director Joel Edman made clear in the same statement. “This investment enables us to further increase our service levels and speed to market with aftermarket support being at the very heart of our strategy,” he said. Its CFO, Jon Töyrä, said the strategy will enable the company to invest in a way that reflects “the synergies of the widespread parts commonality between our products.”

As The Motorship reported, the purchase covers Caterpillar Propulsion AB and its subsidiaries, including Caterpillar Propulsion Production AB, Caterpillar Propulsion Pte Ltd, its subsidiary Caterpillar Propulsion International Trading (Shanghai) Co. Ltd and its Dubai branch.

The deal covers products such as controllable pitch propellers, azimuthing and transverse thrusters and associated control systems. It re-establishes Berg Propulsion, which was taken over by Caterpillar in 2013.

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