Air Energi acquires Kitco

Air Energi Group has completed an acquisition of Kitco, a supplier of manpower, training, accommodation and procurement services in South Korea.

Under the terms of the transaction, Air Energi has acquired the operating assets of the Kitco business to establish the only provider of end-to-end local and expatriate manpower services in South Korea. Kitco’s CEO, Won Seong Choi, will lead the integration of the new entity, Air Energi Kitco.

Home to three dominant shipbuilders, South Korea’s shipyards account for 48 per cent of the global offshore shipbuilding market by value. To date, every floating liquefied natural gas (FLNG) project worldwide is scheduled for fabrication in the country.

Currently supporting more than 600 oil and gas professionals, Air Energi Kitco will provide local staff and expatriates compliant to mandated requirements, together with global mobility services, accommodation and procurement services.

Crucially, the company has exclusive arrangements with property developers that ensure access to high quality western-style apartments in key locations such as Ulsan and Geoje.

“Many of Air Energi’s existing and target clientele are managing significant construction and fabrication projects out of South Korea for the foreseeable future,” says Duncan Gregson, Group CEO, Air Energi.

“Kitco has built a fantastic business and a reputation for being the go-to player for oil and gas firms looking to resource projects in the region. This acquisition marks a major milestone for the Air Energi Group, provides a solution to the challenge of finding suitable accommodation for expatriate workers, and gives us first mover advantage over our international peer group in what is a burgeoning market,” he adds.

The ability to deliver an end-to-end service for both local and expatriate manpower needs in South Korea is a key differentiator for Air Energi. It provides oil and gas operators using Korean shipyards with a compelling case to consider the company as a trusted partner for the complete project lifecycle. The acquisition also builds on the Group’s valuable experience in the FLNG sector and across the oil and gas supply chain, while providing a springboard for further expansion into North Asia.

Press Release, August 7, 2014; Image: Air Energi