Strohm, a manufacturer of thermoplastic composite pipe (TCP), has received around €25 million Convertible Loan from its shareholders as it strengthens its position for low carbon energy transition activities and renewables.
The investment, which was secured at the start of the year before the global coronavirus pandemic struck and subsequent oil price fall, will be used to support the firm’s strategic objective of tripling its 2019 capacity in the next 18 months and the continuation of its product development for the new emerging sectors.
The business, which rebranded from Airborne Oil & Gas to Strohm, ascertained the financial support based on the increasing market acceptance of its corrosion free TCP technology as a viable alternative to traditional subsea pipeline solutions with a significantly extended service life.
“We are excited about the future of TCP and the instrumental role of Strohm in further developing this technology and opening up the market. I would like to thank the shareholders for their continued support of the company and their belief in the unique technology of TCP. We enjoy working with the management team with whom we have a shared vision of TCP’s continuous growth potential in both the traditional and new markets within the energy space as a key transitioning technology.”Bernhard Schmidt, chairman of Strohm’s supervisory board.
“We are very pleased by the overwhelming and continuous support of our shareholders. As momentum grows in the energy transition space, this new funding allows us to triple our capacity and seize on new opportunities to support operators with a zero corrosion, lower CO2 emission technology at a lower cost. The market conditions are challenging right now but we remain confident of the robust growth potential of TCP in the traditional segments of brownfield production enhancement and deepwater riser solutions.”Strohm CEO Oliver Kassam.