New prospects

Although L&H Rørbyg AS itself was created in 2003 following the merger of two companies, its roots actually go back much further.

Ludvigsen & Hermann AS, one of the components of L&H Rørbyg, has been operating since 1838, concentrating its activities in more recent years on the area west of the Great Belt – a strait that splits the main Danish islands of Zealand and Funen. The other constituent company, AS Rørbyg was founded in 1979 with the purpose of performing high quality plumbing and heating services, primarily to the east of the Great Belt. With more than 100 years experience behind it, L&H Rørbyg is a leading specialist in district heating pipes, industrial tubes, stainless steel pipes, plumbing, sprinklers, and prefabrication, with offices across Denmark in Hvidovre, Nyborg, Odense, Fredericia, Aarhus, Herning, Kalunborg, and Aalborg. The company is a fully owned subsidiary of the Kemp & Lauritzen Group.

Given its location L&H Rørbyg’s core markets are Denmark, Norway, Sweden and the UK, where it offers its services to district heating companies, refinery operators such as Shell and Statoil, pharmaceutical companies, and oil and gas industry clients like Maersk Oil and Gas. Expanding upon the company’s capabilities in piping, which range from thick-walled highpressure offshore LH 2 2011 binstallations to the smallest sterile medical piping, Michael Haslund, sales manager, says: “We buy pipes from steelworks and wholesalers in Denmark and across Europe, and use our various workshop and welding facilities to carry out additional processes such as welding, beating and drilling, right up to installation. We have the certification and procedures in place to handle every different pipe material, including steel, plastic, and stainless steel. Utilising our long experience and highly-skilled employees we can provide solutions for any type of pipe that has to contain a liquid or a gas.”

These competencies have recently been expanded further following the acquisition of the service division of Promecon from MT Højgaard. Promecon is a leading player in the Danish market for refurbishment of tanks, and services for piping steel structures. Describing the reasons driving this acquisition, Michael comments: “Although we can offer some of the services that Promecon does, this investment means that we can offer a wider range of services on a much greater scale to our clients. It has also brought additional capabilities to our portfolio because whilst we can provide sprinkler and water mist systems to the big oil tanks in refineries, the acquisition of Promecon means we can extend this to renovation services. These types of modification and maintenance services within the process industry can require special expertise, for example in the movement of tanks, and Promecon has this know-how in-house. We have worked together with Promecon on projects in the past and were aware of its capabilities, so we took advantage of the opportunity to take over the service entity of the business from MT Højgaard, which has added over 100 new staff members to L&H Rørbyg.”

In fact the synergies between the two companies means that CEO of L&H Rørbyg, Henrik Jørgensen does not foresee any particular challenges during the integration process: “Our strategy is to keep Promecon running as a separate division for a period, operating under its own name, logo and business approach. During this time the company will slowly be integrated into L&H Rørbyg through new uniforms and vehicle banners, which will state that Promecon is part of L&H Rørbyg. We want to retain the core spirit of Promecon as this is something that clients are familiar with and appreciate, whilst utilising the complimentary capabilities of the two businesses to offer clients a one-stop-shop for industrial services.”

Certainly L&H Rørbyg’s extensive knowledge of the oil and gas industry has been further strengthened by the acquisition, to the benefit of its customers. “We strive to offer the highest quality solutions at the right price and to schedule, and in order to maintain this level of service we are continuously looking at ways to improve as a company,” explains Michael. “One of the ways we achieve this is through acquisitions, such as Promecon, which bring new competencies to our portfolio. Another recent acquisition was of a special 3D camera, which we use to take 3D images of pipe spools to ensure that all the pipes and structures are manufactured to fit the specifications. Innovative technology like this is key to delivering the most efficient solutions, which are not only effective in the short term, but are designed with a long lifecycle.”

Although the oil and gas industry has experienced tough market conditions over the last year, Michael highlights how L&H Rørbyg’s investment into its service provision has strengthened its position with regards to the 2011 market: “Through our acquisition of Promecon we expect to gain a much larger market share within the oil and gas industry going forward, due to the more complete service and shut-down package we can now offer operators and refineries. We are looking at gaining more projects in the offshore sector, in terms of the equipment and facilities that have to be constructed onshore before being transported to the offshore site for installation. At present we have a number of pre-orders and projects underway in the industrial sector, where I believe our reputation for quality and expertise means that clients are keen to work with us as they know that we can deliver the ideal solution.”

L&H Rørbyg
Products: Pipes and steel structures