The Storebrand Smart Cities Fund recently added a new portfolio company: The rail infrastructure manufacturer Vossloh. Only a week after our investment, the company secured a significant contract to upgrade Norwegian railways, an encouraging development for long‑term infrastructure reliability.
Under the agreement, Vossloh will supply up to three million concrete railway sleepers to Norway over the next eight years. Railway sleepers, the transverse concrete or timber supports beneath the tracks, derive their name from the Norwegian word “sleip,” referring to slippery timber traditionally used in early rail construction.
Production will be handled by Sateba, Vossloh’s subsidiary, at its facility in Hønefoss. Local manufacturing offers clear logistical advantages given the weight of the goods and the site’s strategic rail links to Bergen, Drammen, Oslo and beyond, ensuring efficient distribution to ongoing upgrade projects.
According to Bane NOR, Vossloh’s competitive strengths in quality, cost efficiency, and environmental performance were decisive for winning the tender. The sleepers incorporate low‑carbon cement from Heidelberg Materials, produced using carbon capture technology, which results in around 40% lower emissions compared with conventional alternatives. The order value for the first two years is approximately EUR 50 million.
From a portfolio management perspective, this contract illustrates how acquisitions such as Sateba generate tangible synergies and commercial opportunities. The long‑term nature of the agreement adds to Vossloh’s already strong order backlog, which enhances revenue visibility and contributes to a stable foundation for future growth. Vossloh has a double-digit ambition for the profitability metric Return on Capital Employed (ROCE), which is solid compared to peers.
Vossloh exemplifies the type of company identified through Team Solutions’ thematic investment methodology. The focus is on businesses that address critical societal challenges, and that demonstrate attractive financial characteristics such as solid margins, consistent top‑line growth, and stable, recurring revenue supported by predictable demand. A scalable business model, strengthened by local partnerships and a global reach, is also central to Solutions’ strategies. Vossloh fits these criteria well, given its leading position in low‑emission transportation infrastructure and its expertise within railway track systems. This segment is supported by long‑term trends toward more sustainable and reliable mobility.
The Norwegian railway upgrade is just one example, but the underlying trend is clear: Europe’s focus on upgrading infrastructure is material. The capital flows from associated investments have started to generate revenue for companies that are ready to seize the opportunities.