The boss of a diversified manufacturing giant employing more than 110,000 people globally used a fleeting visit to Aberdeen yesterday to highlight the case for investing in a downturn.
David Farr, chairman and chief executive of Missouri, US-based Emerson was in the Granite City to celebrate the official opening of the company’s new £20million solutions centre in the D2 business park at Dyce.
It is one of a number that group subsidiary Emerson Process Management (EPM) is opening around the world to provide local support, training, and services for customers.
The new facility has also allowed Emerson, whose industrial automation technology and services earned revenue totalling £15.5billion in the company’s last full trading year, to consolidate operations across four Aberdeen locations serving the North Sea oil and gas industry into one site.
Offices and a service centre, together covering more than 62,000sq ft, are now the operational base for about 150 people working both onshore and offshore.
The building is also home a training facility as well as sales, design, project management, commissioning and maintenance services.
Mr Farr, who since his appointment as CEO 16 years ago has steadily transformed Emerson from a products-based manufacturing company into a global engineering and technology giant, said: “In today’s volatile, low oil price environment more attention needs to be paid to project execution and operating efficiency.
“The energy industry cannot just run lean and expect to deliver the capital, operational and financial performance its stakeholders expect.”
“Automation only accounts for 4% of a typical project investment, on average. Yet our automation technologies, coupled with our engineering services and industry knowledge, can provide multiple ways to eliminate cost, reduce complexity and accommodate late-stage project changes. Investing in automation makes sense – even in a downturn.
“These are difficult times for the oil and gas industry but this is also an opportunity to change and improve.”
Scottish region business director Mark Boyes said Emerson’s investment was a show of confidence in a struggling oil and gas industry, adding: “We have products and services which can help the industry in this climate.”
Stuart Brown, general manager, EPM UK and Ireland, added: “Given the challenges the industry is experiencing, now is the perfect time to build upon Emerson’s well-established operations in Aberdeen.”
Guests at the opening ceremony included Aberdeen Lord Provost George Adam and Oil and Gas UK chief executive Deirdre Michie, who said: “In the current climate it’s encouraging to see signals of confidence in the UK oil and gas industry like the opening by Emerson of this innovative new solutions centre.”
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