Subsea Expo

Access. Connect. Grow.

GE Oil & Gas Announces $11M Expansion in Scotland

02 October 2012

GE Oil & Gas, in conjunction with Scotland's First Minister, Alex Salmond, has announced plans for an $11 million expansion project of its Scotland-based Center of Excellence that will create 40 new jobs by 2013.

The announcement comes as the First Minister hosted a round table discussion with key players in the oil & gas industry during his visit to Chicago last week, to reinforce the Scottish Government's commitment to U.S. investors in this hugely important industry.

"When GE Oil & Gas centralized its operations at Montrose, Scotland, in 2009, it was with a view to having additional capacity to meet both customers' expanding needs and GE's anticipated Services growth in the European region," said the First Minister. "This ambitious $11 million expansion further demonstrates Scotland's important role in GE Oil and Gas's future."

The subsea arm of the equipment and services supplier for the global offshore drilling and subsea sectors announced the plans to invest $11 million in its Montrose-based Center of Excellence (COE) earlier this year.

Builders have moved onto site, with work taking place to prepare the ground before construction begins. The buildings are expected to be completed early next year, allowing the installation of new machinery.

Growing subsea activity and GE's increased market share have prompted the investment, with the expansion set to double the site's current size to 4,200 square feet also improving its service capabilities, including product testing and assembly.

Rod Christie, Vice President of Subsea Systems at GE Oil & Gas, said, "This larger, more capable facility and the resultant extended service offering is a reflection of the company's long-term commitment to Scotland. It is also further indication of the sustained growth in business that we have seen globally over the last two years."

The site expansion will ensure that new, much larger deepwater vertical xmas tree (DVXT) projects can be manufactured in-house, allowing the organization to meet increasing demand and accelerating the manufacture of subsea equipment for the organization.

"Deepwater applications are a rapidly growing segment within the oil and gas industry, with the subsea market a key strategic area for us and many of our customers. Recognizing this, the company's significant investment in the Montrose facility shows a clear response to their needs and will allow us to continue delivering high quality, ultra-reliable subsea systems to projects worldwide," said Christie.

Included in the investment is a new state-of-the-art assembly and test line for the construction and testing of sub-assemblies and master block valves (MBV). This will enable the site to produce all key components, from raw material through to a fully-built, flat pack subsea tree. An additional fleet of machinery, including a horizontal lathe and borer, will increase the facility's current capabilities to accommodate the size and weight of trees required for ultra deepwater applications.

Scottish Enterprise and Scottish Development International have been working closely with GE Oil & Gas over the past twelve months to support its operations in Scotland.

"GE's plans for Montrose are a real testament to the global reputation of Scotland's Oil & Gas industry," said Danny Cusick, President, Americas, Scottish Development International. "The Oil & Gas Strategy for Scotland, which was launched earlier this year, identified the crucial role that the sector has to play in our future long-term economic success. Working with inward investors like GE and indigenous Scottish companies to support their operations to grow in key areas of the sector such as subsea manufacturing will be key to this."