DNV GL chief executive Remi Eriksen said the classification society has set out a new growth strategy but that is unlikely to involve further classification acquisitions.
The Oslo-headquartered firm has just announced that from March it will be known simply as DNV, as TradeWinds has reported. The name change removes the reference to German classification society Germanischer Lloyd which it fully acquired in 2018.
Together with the rebranding, Eriksen has drawn up a new growth plan. Asked whether that could involve the acquisition of another classification society, Eriksen said that it is not under consideration at the moment.
“It is not part of the plan,” he said.
However, he does expect growth in the maritime business as it plays into one of DNV GL’s strengths in digitalisation and decarbonisation technology.
Maritime is DNV GL’s largest business sector, with an annual revenue in 2019 of NOK 7.74bn ($913m) out of total revenue of $21.5bn.
Eriksen said he believes that advances in digitalisation will be needed to go hand in hand with the shipping industry’s decarbonisation process.
“We expect to see seaborne trade grow again and we will capture our fair share,” he said. “Shipping decarbonisation needs to grow if [the industry] is to get its ticket to trade.”
DNV GL currently has a 25% share of the maritime classification business.
Germany will play an important role
Eriksen added that its maritime operations would continue to be centred on Hamburg, and the Germany will still play and important role in its business after the name change.
“The German market is important going forward, the same as other markets,” Eriksen said.
He also said that as DNV GL should be regarded as an international rather than a Norwegian organisation, despite going back to its original Norwegian name
“We are international, even more so than at the time of the merger [with Germanischer Lloyd] and that is thanks to the merger we are now well positioned around the world.”
DNV GL currently operates in 100 countries around the world employing around 12,000.
New working practices
DNV GL is headquartered at the massive Hovik complex on the outskirts of Oslo. New working practices that have been adopted since the onset of the coronavirus, and the internationalisation of the business, have raised questions over whether the site can be justified at its current size.
Eriksen said that operations at Hovik would be reviewed.
The coronavirus has also presented DNV GL with fresh business opportunities. DNV GL has developed the product Certification in Infection Prevention Maritime to help shipowners mitigate on board infections.
The programme has already been taken up in the cruiseship industry, where the Covid-19 pandemic has been a major challenge.
Eriksen said he believes such services will continue to be required in the shipping industry even after the coronavirus pandemic passes.
