More details have emerged of plans for new north-east headquarters for drilling contractor KCA Deutag.
The company announced on Wednesday it was consolidating its two offices in Altens, Aberdeen, to a new site on the City South development five miles south of Europe’s energy capital.
The relocation news coincided with the firm revealing plans to cut up to 230 jobs in Aberdeen as it grapples with a slowdown in North Sea drilling.
Property developer Dandara said yesterday it would start work later this year on the new building – the first major premises at City South, Portlethen – with completion expected in summer 2016.
Designed by Aberdeen architecture firm Halliday Fraser Munro, the new KCA HQ will cover 3.75 of City South’s 40 acres.
A spokesman for Dandara was unable to say how much KCA was investing in its new HQ, and a spokeswoman for the energy service company also said the figure was not being disclosed. Gavin Wyley, managing director of Dandara in Aberdeen, part of Isle of Man-based Dandara Group, said: “We are pleased to confirm our first major project within City South
“Fuelled by the energy industry’s resilience and Aberdeen’s renowned role as a centre of excellence in the sector, capital investment in the city continues to stand up to the challenges seen in other markets as it supports major new developments at home and internationally.”
On Wednesday, KCA said 500 jobs across its business spanning 20 countries were “at risk”, while it would also cut staff wages by 5% across the board. It employs 10,000 worldwide and 1,200 in its North Sea offshore business.
Revealing the plans to staff at its Altens base, it said it would consult on its plan to cut 30 office jobs and 200 offshore roles after two of its North Sea clients “paused drilling operations”.
City South is Dandara’s largest commercial property site in Scotland, and follows completion of major projects for Forum Energy Technologies at Westhill and Schlumberger at Badentoy North, Portlethen.
Dandara is already working on the speculative build of a variety of office pavilions at City South, ranging from 3,000 square feet, with first completions for these and also an onsite catering unit expected during the first half of 2015.
