Express Engineering Enjoys Subsea Equipment Sector Upturn
- Business & Finance
Subsea manufacturing specialist Express Engineering is investing in a new £3.5-million assembly and test facility near its Gateshead headquarters in the UK, expecting to create another 30 jobs.
Since embarking on a refocused business strategy at the end of 2018, Express Engineering has seen revenues in the oil and gas sector grow to around £20 million in 2019, on target to reach £40 million during this year.
Market intelligence shows a positive outlook for subsea ‘tree’ awards for the next few years, placing Express in a key position with customers in the subsea equipment sector.
Outsourcing and supply chain management will also be an integral part of the accelerated growth strategy.
During the last year, Express Engineering focused on a new product strategy to become a supply specialist for actuator assemblies, connection systems and tooling for wellheads, drilling and subsea tree structures.
The company has recruited around 100 people in the last 12 months taking the workforce to more than 235.
This growth coincides with the re-appointment of a former management team which features original owner, Chris Thompson.
Chris Thompson, chairman of Express Engineering, said: “Shortly after re-joining the company late in 2018 we took the decision to move away from a diversification strategy to refocus around the subsea oil and gas sector, where we made our reputation before the market collapsed in 2015.
“We’re well placed to take advantage of increasing enquiry activity and order levels in a recovering oil and gas sector. Based on current projections we see no reason why we cannot reach record revenues in two years’ time.”
Managing director, Gary Thirlwell, explained: “We are transforming the business through an experienced management team, a new product strategy and an investment in infrastructure.
“It’s also fair to say we’re in the right place at the right time – we have the capacity and expertise to be able to respond to market demand.
“We currently have an order book of more than £40 million for core products and connection systems. The pipeline for future business looks very strong, ensuring we continue to grow and strengthen our financial position.”