Expanding EnerMech targets the US marketCompany News // May 2, 2012
Mechanical engineering group EnerMech, has ring-fenced more than US$65 million (£40 million) to launch a major expansion in to the US, as it seeks to replicate massive growth in Europe and the eastern hemisphere.
Up to US$15 million (£9.5 million) will be invested in new process, pipeline and umbilical (PPU) equipment with another US$50 million (£31.5 million) set aside for strategic acquisitions allied to its other service lines and to build upon the existing US business, EnerMech announced at OTC in Houston this week.
The ambitious UK company has also headhunted two senior US oil and gas figures who will lead the Stateside expansion.
Vince Kouns and Alan Sweeney, who were respectively founder/President and Vice President of Valkyrie Commissioning Services until it was acquired by Weatherford in 2005, will be responsible for establishing the overall EnerMech brand and service lines in the Americas region, reporting directly to EnerMech main board director Les Graves.
EnerMech's managing director, Doug Duguid, forecast a two pronged strategy of organic growth of the existing PPU business plus acquisition led growth in cranes, equipment rental, hydraulics and valves, which will generate profitable revenues in excess of US$50 million (£30 million) within three years.
Mr Duguid said: “Post-Macondo we see a strengthening market with clients who want a reliable cost-effective service and this offers us huge opportunities. Starting this growth in Houston will also access West African opportunities, and subsequently Mexico, Canada, Trinidad and Tobago and Brazil.”
The company is on a major recruitment drive and will add to its existing Houston premises and plan to open a Gulf Coast operating base.
Mr Duguid said: “After our expansion into the Middle East, Far East and Australia, our attention has turned to the US and we believe we can replicate our international success in the Americas by backing strong, local management.
“We have waited until we could secure the best possible management team and we have found that in Vince and Alan, who both have regional and international experience in growing service organisations. Their track record of growth at Valkyrie, as well as extensive experience in the Americas, will be a game changer for EnerMech in the western hemisphere.”
Since been founded in Aberdeen in 2008, EnerMech has invested more than US$95 million (£60 million) in facilities, equipment and five acquisitions and has forecast 2012 sales will top US$222 million (£140 million) with profits expected to double to US$31 million (£20 million).
Last month the company announced further expansion in the eastern hemisphere which will see the opening of seven new offices in India, Hong Kong, Kuala Lumpur, South Korean and Australia, and in 2013 plans to extend its presence in Taiwan, Thailand, Vietnam, Indonesia and New Zealand.