Cavotec narrows its focus

As the market trends and regulatory requirements are expected to drive significant growth in demand for shore power, automated mooring and port and industry electrification, Cavotec has decided to focus resources and investments in these areas and will consequently divest its Airports business.

“We are now optimizing and streamlining our portfolio to enable us to focus on the fast-growing ports & maritime market for profitable sustainability solutions as well as leveraging on the technology synergies with our Industry business, such as connectivity and high power and high speed electrical charging,” said Mikael Norin, CEO of Cavotec.

The decision is the result of a strategic assessment with a thorough market analysis of the electrification and efficiency trends in the ports & maritime market as well as the segments Cavotec operates in for industrial equipment. With an expected accelerated adoption of electrification and automation solutions at thousands of ports around the world and for millions of pieces of industry assets, Cavotec has an opportunity to strengthen its market position by focusing on its core products such as shore power, automated mooring (MoorMaster), reels, electrical charging of commercial vehicles as well as its wide service portfolio to support its customers.

Currently, Airports accounts for approximately 25% of Cavotec’s revenue. Cavotec estimates that a sale of the Airports business can be completed during 2021.

Cavotec will make further announcements on investments in products, technology and capabilities as part of the implementation of its new focused strategy, said Mr Norin.