CAPE Industrial Services Ltd has awarded EnerMech a three year contract for the provision of plant and equipment support.
The contract, worth an estimated £4.5 million, (US $7.1 million) covers the rental and supply of power generation and blasting, tooling, lifting and rigging equipment for Cape’s UK and Dutch North Sea offshore contracts, which has base locations at Aberdeen, Great Yarmouth and Den Helder in the Netherlands.
Aberdeen-based EnerMech will provide non-specialist plant hire for Cape’s main disciplines of coatings, insulation, access and cleaning in addition to options for servicing maintenance of Cape-owned plant and equipment.
EnerMech say its investment in high-end management systems, including EnerMech LIVE ® which gives clients clear visibility of costs and online access to safety certifications and equipment management, was a factor in winning the award.
EnerMech was able to demonstrate its use of industry-leading equipment, systems and procedures would ensure the highest safety standards are maintained and believes a strong alignment between both companies, but without any overlap in services, will strengthen the working relationship.
Up to six new jobs will be created by EnerMech, including engineering, lifting and service technician and admin posts.
EnerMech recently invested £20 million (US $32 million) in a new Process, Pipeline & Umbilical services division which sits alongside existing services of equipment rental, rigging and lifting, hydraulics, crane services, training, valves and pumping equipment.
EnerMech business development director, John Wingfield, said: “Cape were looking for more than just a supplier-client relationship and with our business strategy model similar to their own, both companies were viewed as a good match.
“We clearly demonstrated our ability to invest in new equipment and technologies and in our facilities and people and that proved an important factor in winning this tender in a competitive process.
“Both companies are keen to work collaboratively to bring forward innovative technologies and equipment which will improve safety and efficiency and we have identified opportunities to conduct reciprocal business.
“We have worked with Cape on an ad-hoc basis but this important award takes our relationship to a new level and we are looking forward to working together in a mutually rewarding partnership.”
Cape is an international leader in the provision of essential non-mechanical industrial services focused on the energy and natural resources sectors. With over 19,000 people in 28 countries, Cape reported revenues of £655.1 million in 2009.
Note to Editors
EnerMech Ltd was formed in April 2008.
The company specialises in the supply, maintenance and engineering of cranes, lifting, valves and hydraulic equipment, equipment rental and the provision of training and specialist personnel to the energy industry.
With the acquisition of Specialist Maintenance Services Ltd and A1 Safety Training Consultants Ltd, EnerMech is now a leading international provider of offshore crane and lifting operations, crane personnel and safety training. EnerMech also has a significant presence in Norway following the acquisition of Bjørge ASA’s crane division in October 2008.
In April 2009, EnerMech extended its presence in the Middle East with the acquisition of UAE free zone companies Pavitt Energy Limited and Scotia Oilfield Trading FZE which has since been integrated in to the EnerMech group. Investment totaling £5.1 million ($7.5M) has been made in equipment stock rental, improvements at our bases in Ras al-Khaimah and Doha, and plans have been drawn up to build a new £3 million facility in Jebil Ali, Dubai which will be ready in 2012.
In April 2010, EnerMech acquired Aberdeen based hydraulic engineering specialist Norson Power in an £11 million deal. Norson Power provides hydraulic pipework installation and designs and manufactures hydraulic equipment for the oil, gas and marine industries.
EnerMech recently agreed a £24 million funding package with Lloyds Banking Group and, together with private equity provided by Lime Rock Partners and shareholder finance, has in place £40 million to support organic growth and further acquisitions.
In August 2010 EnerMech invested £4 million to acquire its 16 acre headquarter site in Aberdeen. A further £840,000 is being spent on refurbishments and the construction of new workshops, while another £2 million has been invested in setting up a new Valve Care division which will target the valve supply, testing, inspection and maintenance sector. In December 2010 EnerMech acquired Aberdeen Valve Supplies Ltd and its subsidiaries LG Ball Valves Ltd and Valve Paint Shop Ltd.
EnerMech employs 580 staff at its Aberdeen headquarters and bases in Great Yarmouth, Stavanger, Dubai, Qatar, Ras al-Khaimah, Singapore, Indonesia, China, Ghana, South Africa and Perth, Australia.
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