Frontline Ltd. (the "Company" or "Frontline") (NYSE:FRO) today announced that its ownership interest in Feen Marine Scrubbers Inc. ("FMSI") has increased to 28.9% following the purchase by FMSI of a 30.8% stake in FMSI from Bjørnar Feen.
Robert Hvide Macleod, CEO of Frontline Management said: "FMSI has gained market share since our initial investment, and we are pleased to see our ownership stake in the company increase. Setting aside potential financial benefits, our ownership in FMSI has allowed Frontline to source high specification scrubbers on short notice, which we believe will present a challenge to many owners as the deadline for sulphur emissions compliance approaches."
FMSI was formed in 2017 and has rapidly become a leading manufacturer of exhaust gas cleaning systems ("EGCs"). The company has a presence in Batam, Oslo, Singapore, Athens, Mumbai, Shanghai and Seoul and has received orders for more than 150 EGCs systems since its sales efforts were initiated. As of 3 January 2019, FMSI had delivered 45 EGCs, and fully commissioned 18 systems. In response to market demand, FMSI is increasing its production capacity through constructing a 40,000 square meter facility in Batam, Indonesia. The new facility, which will commence operations in February 2019, will see production capacity increase five-fold at a time when some manufacturers are unable to accept scrubber orders due to capacity restraints.
January 15, 2019,
The Board of Directors
Robert Hvide Macleod: Chief Executive Officer, Frontline Management AS
+47 23 11 40 84
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
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