EnerMech Announces Investments in US and Mexico Businesses
Mechanical engineering group EnerMech announced at OTC in Houston that it has invested more than £13 million ($20.2m) as it steps up its drive to cement its presence in the US and Mexico.
A recent move to a new 50,000 sq ft workshop, office and storage facility near to Houston’s Energy Corridor has been followed with a £9 million ($14m) investment in new Process, Pipeline and Umbilical (PPU) equipment and in opening a base at Villahermosa, Mexico.
For the Aberdeen headquartered company, the lure of the Gulf of Mexico and its deepwater projects is strong and the strategic investment is already paying off with confirmation of a number of PPU contracts in 2014 worth up to £6 million ($9.3m).
The headcount stands at 40 but Vince Kouns, president of EnerMech’s US operation, expects that to grow to 120 by the end of 2013 with turnover more than trebling from £4 million to £15 million ($6.2m-$23.3m), and trebling again to £50 million ($78m) in 2015.
The company has a lengthy connection to Houston through respected hydraulics specialist Norson Power which was acquired in 2010 and Kouns, along with vice president Alan Sweeney is focussed on replicating that success in PPU, cranes and lifting, equipment rental, valves and training services.
He said: “EnerMech is well established and has an excellent reputation in the UK, Europe, the Middle East and Asia Pacific regions and now it’s our turn to show what we can do. The US market is the final piece of the jigsaw and using Houston as our gateway we are doing exactly the same as in those other regions, by making significant investment in infrastructure and experienced personnel, who know the oil and gas industry inside out.
“As a relatively new player in GoM the reception has been very encouraging. We have had a warm welcome from a number of people over here who know about EnerMech and our successful track record and have been happy to introduce us to potential clients. The other advantage is the strength of EnerMech’s reputation in the North Sea and Asia Pacific and as a company with a global footprint we have a depth of resource and mobility capabilities which others find difficult to match.”
While the US GoM remains the core market, EnerMech has been quick respond to opportunities south of the border and before the ink was dry on the Villahermosa facility the first Mexican PPU contract was landed, with clients also showing a strong interest in cranes and lifting and valve services.
Vince Kouns added: “We have a strategic advantage in that we operate the youngest fleet of equipment in the market. This means the client benefits from greater fuel and operating efficiencies and the new equipment also offers a reduced footprint offshore which is an important factor.
“The GoM has not fully recovered from Macondo but we are much busier this year and the bid activity is at such a level that 2014 is stacking up to be almost the perfect storm in terms of project work.”
Press Release, May 07, 2013