One north-east oil field equipment provider said yesterday it had invested £4million in a factory in China because of the opportunities in the country.
Portlethen-headquartered Downhole Products has had manufacturing operations in China before, but said it wanted to set up a permanent base in Xian because of growing demand in the Far East and the Middle East.
Downhole managing director Ian Kirk said: “We have been manufacturing in China for six years and the decision to open the Xian factory is a strong demonstration of our commitment to the region.”
Mr Kirk also welcomed the news that CNOOC and Sinopec would have a presence on the UK continental shelf for the first time. He said he believed the moves from the two state-controlled operators were driven by the country’s rapid expansion and growing demand for energy.
Mr Kirk said: “I have been visiting China since 2006 and, even if you go out four times a year, you will see major changes every time you go.
“The way China’s transport network is developing is incredible – I have seen bicycles replaced by motorbikes and motorbikes replaced by cars, and that creates a huge need for fuel.”
Mr Kirk said he believed Sinopec and CNOOC’s involvement in the North Sea would be good news for Downhole. “We already have a good relationship with these companies,” he said, adding: “We have been working with Sinopec all over Asia for a while, and they are a good company to work with.”
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