£31m investment to create ‘world-leading’ centre of excellence.
Baker Hughes, a GE company (BHGE), is to build a subsea manufacturing campus in Scotland’s north east, to support the global oil and gas industry.
Backed by a £4.9 million grant from Scottish Enterprise, BHGE has committed £31 million to a manufacturing centre of excellence, based at their existing location in Montrose, which will create 100 new jobs. The 35-acre site will include test and assembly, research and development (R&D) and workforce training facilities.
The centre, based at the company’s existing location in Montrose, will be among the most advanced facilities of its kind anywhere in the world. It will pioneer state-of-the-art manufacturing processes, such as virtual reality tools, industrial 3D printing, automation and sensor-equipped machines.
First Minister Nicola Sturgeon announced the funding as she addressed the Scottish Manufacturing Advisory Service annual conference in Cumbernauld.
“Manufacturing, which employs more than 180,000 people in Scotland, is crucial to the success of our economy. Therefore I welcome the ambitious plans by BHGE to create a world-leading subsea centre of excellence in Montrose, supported by Scottish Government funding.
“This facility will bring new jobs and investment to Scotland. And as one of the most advanced centres of its type in the world, it will underline our international reputation for oil and gas innovation, developing the products and services the industry needs for the future.”
Graham Gillies, Vice President-Subsea Production Systems & Services, BHGE, said:
“This is very welcome news for the oil and gas industry, and for the UK manufacturing sector in particular. We are investing in our facilities globally and our collaborative approach with Scottish Enterprise is a strong example of how we are supporting a more sustainable future for this industry.
"Subsea technology is undoubtedly one of the UK’s greatest export success stories, with industry-leading technology and solutions being designed and manufactured here, and installed across basins worldwide."
Paul Lewis, managing director, Scottish Enterprise, added:
“Scotland’s oil and gas industry, and in particular the subsea sector, is in the vanguard of global industrial development in this field and BHGE is at the forefront.
“We are pleased to be able to support this exciting project, which is testament to BHGE’s vision and ambition and the company’s skilled and talented workforce here in Scotland.”
BHGE, which formed in 2017 when Baker Hughes and GE’s oil and gas business merged, employs 2,500 people in Scotland. The company provides products, equipment and services to the global oil and gas industry.
The centre of excellence will design and manufacture subsea equipment that improves efficiency and productivity, with R&D focused on new technologies that reduce costs and lower the carbon footprint of oil and gas operations.
The Scottish Manufacturing Advisory Service is delivered by Scottish Enterprise and helps companies to grow sales, reduce costs and become more successful.
In September, the First Minister announced an extra £45 million for R&D grants during this parliament, an increase of 70%.