Magma Gets $60 Mln Boost
Magma Global, manufacturer of m-pipe, has raised $60 million from Strategic Industrial Capital Partners (SICP) and existing investors to support its growth plans.
According to Portsmouth-based company, the proceeds of the investment round will be used for the expansion of Magma’s manufacturing capability and to provide additional working capital to support its rental business.
Magma’s m-pipe is marketed as the world’s most reliable subsea pipe for use in the offshore oil and gas industry – a high performance carbon fibre / PEEK polymer pipe which is one tenth the weight of equivalent steel pipe and highly resistant to degradation.
Martin Jones, Magma Global’s CEO, said:
“It is a tough market for our customers today and m-pipe® is a key technology in helping reduce capex and opex costs for subsea exploration and production. This investment enables Magma to accelerate the expansion of our manufacturing facility, with a fourfold increase in our capability over the next two years to meet the increasing demand for m-pipe®.
For some time now the market has recognised that, unlike steel and non-bonded flexibles, m-pipe® does not rapidly deteriorate over time through corrosion and chemical effects. Combined with its exceptional fatigue and erosion performance, this gives m-pipe® a service lifetime far beyond other technologies.
This capital raise enables Magma to launch its rental business focused on intervention and downline applications. By renting m-pipe® Magma can deliver our customers a more cost effective and reliable alternative to coiled tubing and downline solutions, whilst maximising value from the long life of m-pipe®.
I would like to thank our shareholders for their continuing support and look forward to building on the solid foundations that have been laid over the past five years since we founded Magma.”