They had faith in the company, and bought it when the employer wanted to get rid of the mechanical activity a few years back.
It has proven to be a lucrative choice. Mongstad Industrier listed in 2023 for an operating profit of over NOK 11.5 million before tax. The corresponding figure the previous year was just under three million.
– It looks good this year as well, states general manager Ståle Vabø.
Jumped when the offer came
Together with his colleague Jan Helge Rikstad, he struck and bought his own workplace when Finnish Caverion suddenly decided to get rid of the mechanical activity at Mongstad in 2018.
– We were naturally a bit doubtful, but chose to take the plunge when the offer came, both to secure our own and our colleagues’ jobs, says Vabø, and adds that the mechanical company was also doing well at the time.
Today’s Mongstad Industrier, which has a history dating back to 1972, and which has now taken back its old name, supplies a wide range of mechanical and maintenance services both in Norway and abroad.
The customers are oil refineries, offshore operations and the mechanical industry.
Major contract
Mongstad Industrier is located in an ever-growing industrial cluster just outside the gates of Equinor’s facility in Mongstad. Early last year it became known that the company had entered into a long-term contract for maintenance work at Equinor’s refinery in the neighbourhood. The contract came in addition to other tasks companies have, and sent the company into the market for more colleagues.
It was widely reported in the local press that the company was targeting 40 more employees. Mongstad Industrier is still looking for more employees.
– We are. Now we are particularly looking for people in project management and engineering, says Vabø.
Much of the reason for the result on the bottom line lies in strong sales growth. In 2023, the company had revenues of NOK 75.2 million compared to NOK 46.8 million the previous year.
Mongstad Industries
- In 1972, Einar Øgrey established the company in connection with the development of Rafinor (now Equinor Energy AS).
- In 1988, Fonnes Mekaniske Verksted bought the building, and in 1991 the company changed its name to Mongstad Industrier AS
- In 1998, the Finnish company YIT Corporation bought 100 percent of the shares, as well as the building. The company was for a time called YIT Industrier before the name changed to YIT Building Systems AS in 2003.
- In 2013, the company split. The construction business and housing investment in Finland, the Baltics and Russia remained YIT, while the parts of YIT that included technical building installations and service were included in a new company under the name Caverion Group.
- On 1 November 2018, Caverion Norge AS sold the branch at Mongstad to Mongstad Industrier AS.
- Today, Mongstad Industrier is owned by the companies Katlia AS and Monstun Invest AS with 50 percent each. The companies are wholly owned by Ståle Vabø and Jan Helge Rikstad respectively.
Sources: Mongstadindustrier.no/Brønnøysundregistrene
– Is it the effect of the recent maintenance contract with Equinor that we see in the figures?
– It obviously makes a strong contribution in the right direction, but it is not the only one. In general, there have been good times for this type of industry. But it is clear that the Equinor contract has a lot to say, says the general manager, who has himself worked in the company since the mid-nineties, most of the years as general manager.
Had to say no
Vabø says that the demand for the services the company provides has been so strong that they have had to turn down assignments.
Despite good times, the company is not taking off the gas. Mongstad Industrier still has targets to reach.
– Our goal is to make it better. We aim to reach a turnover of NOK 100 million, says Vabø.
He says that the industrial company has also had good figures in the past, but admits that 2023 is clearly the strongest year since he and his partner took over the company.
The record year ended with an extraordinary utilization of a total of NOK four million to the two owner companies Katlia AS and Monstun Invest AS, which are owned by Vabø and Rikstad respectively.
According to the accounts, the company had 40 employees last year.
