- Visit to GE Oil & Gas' Wellstream Site is Part of Minister's Tour of Projects in North East U.K.
- GE to Expand Production Capacity; Protect and Create More Than 200 Jobs
- Expansion to Help GE Keep Pace with Global Demand for Subsea Equipment
NEWCASTLE, U.K. March 28, 2013---As part of his tour of key industrial and manufacturing sites in the North East U.K., Minister for Business & Enterprise and Member of Parliament Michael Fallon MP today visited GE Oil & Gas in Newcastle.
GE Oil & Gas employs more than 580 people at its Newcastle manufacturing facility which specializes in the engineering and production of Wellstream high-quality flexible pipeline products and solutions used in the subsea oil and gas production sector.
GE Oil & Gas' Wellstream expansion project is scheduled to be completed in September 2013 and will see the addition of two new 26m diameter 3,000 tonne manufacturing and storage carousels to its existing 2,000 tonne capacity.
In 2011, the U.K. government awarded GE Oil & Gas a Regional Growth Fund grant of £3.0M to help with the expansion and support the creation of new jobs. The project allows the business to keep its key technology developments in the U.K., with GE Oil & Gas investing £11.15M in research and development through 2012-2014 and spending £16.3M on capital expenditure. As of December 2012, GE Oil & Gas had exceeded its RGF employment targets by creating 126 new jobs at the site.
The Minister first met with GE Oil & Gas leadership and employees working on the expansion project before touring the Wellstream site.
Business Minister Michael Fallon said: "GE Oil & Gas' expansion project in Newcastle is great news for the North East and another great example of the Government's commitment to growth in action. This is not just another Regional Growth Fund success---in creating jobs and attracting private sector investment---but also comes on the same day as the launch of the oil and gas industrial strategy in Aberdeen.
"The strategy will benefit companies such as GE Oil & Gas in creating a more stable environment to encourage investment and help increase exports to rebalance the economy. This is a long-term partnership which will help maintain investment in the North Sea and develop the supply chain in a very important industry."
GE Oil & Gas acquired Wellstream International Ltd in 2011 as part of its continued growth in the offshore technology and services sector.
"This project demonstrates GE's commitment to invest in our U.K. oil and gas production and service operations. We are committed to growing this business while at the same time promoting local employment and economic growth," said Rod Christie, Vice President Subsea Systems, GE Oil & Gas.
Christie noted the expansion will enable GE to increase the competitiveness of its Newcastle facility by being able to manufacture flexible pipelines for larger remote offshore developments, with the capability to manufacture longer lengths of pipe, reducing the number of mid-line connections, end fittings and leaders and trailers as well as installation costs.
In addition to the Wellstream expansion, other recent GE Oil & Gas facility expansion projects in the U.K. include the investment of more than £620,000 (US$1 million) to modernize its existing Nailsea facility and the creation of over 200 new jobs at a new facility at nearby Bristol. Also in 2012, GE announced a £9million (US$15 million) investment in its Montrose manufacturing plant with the creation of 40 new jobs.
About GE
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.
About GE Oil & Gas
GE Oil & Gas is a world leader in advanced technologies and services with 37,000 employees in more than 100 countries supporting customers across the industry---from extraction to transportation to end use. Making the environment, health and safety, quality and integrity our highest priorities is The Way We Work. Our technologies and services include: surface and subsea drilling and production, monitoring and diagnostics, measurement and controls, large-scale LNG, pipeline compression and inspection, well site and industrial power generation, technologies for the refining and petrochemical industries, and modular CNG and LNG units for transportation sectors. Through our customized service solutions, training programs and technologies, GE Oil & Gas partners with customers to maximize their efficiency, productivity and equipment reliability; develop their next generation workforce; and fully benefit from the megatrends of natural gas, the growth of subsea and hard-to-reach reserves and the revolution in asset health management.
Follow GE Oil & Gas on Twitter @GE_OilandGas.
About the Regional Growth Fund
The Regional Growth Fund (RGF) is a £2.6 billion fund operating across England from 2011 to 2016. It supports projects and programmes that lever private sector investment to create economic growth and sustainable employment. Round 4 closed on 20 March 2013. For more information please visit www.gov.uk/understanding-the-regional-growth-fund
Fabio Pianini*
GE Oil & Gas
[email protected]
+39-055-423-8872