Mechanical engineering group EnerMech revealed yesterday it had allocated more than £40million for expansion in the US, as it sought to replicate big growth in Europe and the eastern hemisphere.
Up to £9.5million will be invested in new process, pipeline and umbilical (PPU) equipment with a further £31.5million set aside for strategic acquisitions allied to its other service lines and to build on the existing US business.
The ambitious Aberdeen company has also headhunted two senior American oil and gas figures who will lead the Stateside expansion. Vince Kouns and Alan Sweeney were founder/president and vice-president of Valkyrie Commissioning Services until it was acquired by Weatherford in 2005.
EnerMech managing director Doug Duguid forecast a two-pronged strategy of organic growth of the PPU business plus acquisition-led expansion in cranes, equipment rental, hydraulics and valves.
He said: “Post Macondo, we see a strengthening market with clients who want a reliable cost-effective service and this offers us huge opportunities. Starting this growth in Houston will also access west African opportunities, and subsequently Mexico, Canada, Trinidad and Tobago and Brazil.”
The company is on a major recruitment drive and will add to its Houston premises and plans to open a gulf coast operating base. Mr Duguid said: “After our expansion into the Middle East, Far East and Australia, our attention has turned to the US and we believe we can replicate our international success in the Americas by backing strong, local management.
“We have waited until we could secure the best possible management team and we have found that in Vince and Alan, who both have regional and international experience in growing service organisations. Their track record of growth at Valkyrie, as well as extensive experience in the Americas, will be a game changer for EnerMech in the western hemisphere.”
Since its foundation in 2008, EnerMech has invested more than £60million in facilities, equipment and five acquisitions and has forecast 2012 sales will top £140million with profits expected to double to £20million. Last month, it announced further expansion in the eastern hemisphere involving the opening of seven new offices in India, Hong Kong, Kuala Lumpur, South Korea and Australia, and in 2013 plans to extend its presence in Taiwan, Thailand, Vietnam, Indonesia and New Zealand. EnerMech employs more than 1,000 staff and provides mechanical and engineering services to the energy sector.