ABB told the market that considerable synergies exist between the two companies and hope the agreement will aid them in becoming the leading suppliers of 'packages' of vessel automation, dynamic positioning, electric power, propulsion and thruster systems for marine and offshore vessels.

"By this agreement both companies will capitalise on ABB's new industrial IT technology by a joint development program on integration of total solutions, enhancing the vessel's performance, reliability safety, fuel consumption and emission," ABB said. "Technology leadership will be secured by focussing the development resources on core competencies, technologies and products."

ABB added the cooperation agreement is also a response to the changing buying patterns of fewer shipowners and shipyards as a result of the all the mergers and alliances currently taking in the rapidly consolidating marine industry.