A £15m investment at GE Oil & Gas in Newcastle, with Regional Growth Fund support, has led to the addition of two massive manufacturing and storage carousels, increasing capability for deep water pipeline manufacture at the site on the River Tyne.
The investment, part-funded by the Regional Growth Fund, has increased the site’s capacity and capabilities and has created more than 152 new jobs, the company says.
The site designs and manufactures high-quality flexible pipeline products and solutions used in the subsea oil and gas production sector.
Two 26m diameter, 3000-tonne manufacturing and storage carousels have been added to its existing 2,000-tonne capacity. The carousels are required to service the growing number of deep-water developments worldwide, and rising demand for larger diameter pipelines that are specifically designed for higher pressure wells.
Mark Elborne, GE President & CEO, UK & Ireland, and Newcastle’s site leader Bruce Heppenstall welcomed local MP Nick Brown and Lord Mayor Margaret Wood to the ex-Wellstream Flexibles subsea manufacturing facility yesterday, for the formal opening.
Suppliers and contractors involved in the development of the facility joined them for a tour of the plant.
Mr Elborne said: “New ways of thinking and the provision of ever-more advanced technologies are key considerations for those companies wishing to grow and secure their future in this innovative industry. This is another example of GE investment into the UK, which has already proven to be an important contributor to the local economy, through the creation of new jobs across the region and which will contribute to the UK’s growing exports.”
Nick Brown MP said: “We have a long history of manufacturing in the North East and, as a region, have made a name for ourselves as being at the forefront of technological advancement. The expansion project that has recently taken place at GE Oil & Gas’ Newcastle facility is a prime example of this and I am delighted to have been able to have been a part of this celebratory event, an enjoyable and informative day.”
GE Oil & Gas employs more than 580 people at its Newcastle facility and 207 employees at the nearby pipeline inspection service facility in Cramlington. GE Oil & Gas acquired Wellstream International Ltd in 2011 as part of its growth strategy in offshore markets.
Bruce Heppenstall will talk to visitors at the Global Manufacturing Festival 2014 on June 25 about GE UK’s oil and gas business and supplier opportunities.