A north-east company which managed to survive the nationwide cutback in bank lending is predicting a surge in turnover this financial year.
The upbeat view from pipeline engineering specialist Stats Group came yesterday during a visit by Gordon MSP Alex Salmond, Scotland’s first minister.
Mr Salmond was invited to tour the Stats headquarters at Kintore in recognition of his support for the business during one of the most challenging periods in the company’s history.
He assisted owners Pete Duguid and Lorraine Porter in his role as constituency MSP during a time in which Stats experienced difficult trading conditions – primarily because of restrictions in bank lending – and was forced to make 40 staff redundant.
But Stats has since been able to recruit 19 staff, including some of those it laid off, and plans to recruit a further 15 to capitalise on global opportunities in 2011. The firm’s current workforce is 105.
Turnover is expected to exceed £17.5million this year from just over £13million in 2010.
Stats provides pipeline and process isolation and intervention services and technologies across the oil, gas and petrochemical industries. In addition to its core business in the North Sea, Stats is engaged in projects in Qatar, Malaysia, Abu Dhabi, Saudi Arabia and South America, while it also has a Canadian subsidiary.
Managing director Mr Duguid said: “Like every other company in our sector we endured a very difficult time, but we are now forging ahead and getting back to what we do best.”
Mr Salmond said: “Stats is a fine example of an indigenous Scottish company which has grown successfully into a high-end technical innovator with products in demand across the oil-producing world.
“It is this kind of company on which the future of Scotland depends and it is important to ensure that Stats and others of their ilk continue to prosper, create employment and promote Scottish engineering in international markets.
“Everything that goes out Stats door is designed, manufactured, assembled and tested in Kintore, on our doorstep, then installed across the globe.”
Meanwhile, expanding Ellon company LFH Engineering’s new premises were also officially opened by the first minister.
Mr Salmond praised the continuing success of the firm as he toured its base at Castlepark Industrial Estate.
Last year, the company, which specialises in the manufacture of marine diesel engines, invested a six-figure sum in equipment and almost doubled its workforce to meet demand.
LFH Engineering also launched 24-hour operations to meet demand from clients including Rolls-Royce, MAN Diesel and Caterpillar.
Mr Salmond said: “The north-east is known around the world for its engineering expertise, and LFH is a fine example of top engineering output. From the diesel engine pumps and ship propulsion systems produced here to the engineering talent of our skilled offshore industry, this area boasts a wealth of technical ability that is second to none.”