Caterpillar to sell off Caterpillar Propulsion AB

Caterpillar Propulsion’s propeller and thruster products could soon come under the Berg Propulsion brand.Caterpillar Propulsion’s propeller and thruster products could soon come under the Berg Propulsion brand.

Caterpillar Luxembourg SARL has agreed to sell Caterpillar Propulsion AB and its subsidiaries to a holding company controlled by former Berg Propulsion coo Stefan Sedersten

Caterpillar Propulsion AB is a manufacturer of mechanically and electrically driven propulsion systems and marine controls for ships.

The sale is expected to close on 30 June 2020.

The proposed divestment covers Caterpillar Propulsion AB and its subsidiaries, including Caterpillar Propulsion Production AB, as well as Caterpillar Propulsion Pte. Ltd, its subsidiary Caterpillar Propulsion International Trading (Shanghai) Co. Ltd and its Dubai branch.

The transaction will also include the manufacturing operations in Sweden and Singapore and office locations in Shanghai and Dubai.

Prior to its acquisition by Caterpillar in 2013, Berg Propulsion had a long track record in controllable pitch propeller and heavy-duty thruster design and build.

Sedersten intends to resurrect the Berg Propulsion brand. Upon the closure of the sale, the products and services will revert to Berg Propulsion branding.

Stefan Sedersten was previously the COO and shareholder of Berg Propulsion AB and is currently chairman of Lean Marine Sweden AB and I-Tech AB, businesses focused on marine equipment and vessel optimization.

Stefan Sedersten is committed to preserve continuity with Caterpillar customers and dealers and to maintain a close business relationship with Caterpillar Inc., supporting both MaK and Cat marine sales, as well as developing its products and services further with other customers in the marine sector.

The current team within Caterpillar Propulsion will transfer with the sale ensuring continuity of support for current and future customers.

“My message to customers, suppliers and other external partners is clear – we will honour all existing contracts and agreements and make sure to safeguard a seamless transition,” Sedersten said.

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