A new US$19.9 million (£16 million) Center of Excellence (CoE) for subsea development is to be established in East Kilbride, Scotland and will be led by TÜV SÜD Ltd. (NEL), a provider of research and development, consultancy and testing to the international oil and gas industry.
TÜV SÜD has agreed to invest $13.8 million (£11.1 million) in its NEL site in East Kilbride to develop the CoE for subsea development, thanks to a $6.1 million (£4.9 million) research and development grant from Scottish Enterprise. The project marks the largest capital investment to date in the company’s UK business and, in addition to creating at least 17 new jobs, will safeguard a further 82 existing jobs in Scotland.
Designed to provide a new, best-in-class, high pressure multiphase flow test facility, with a test range beyond anything currently available anywhere else in the world, the CoE will enable NEL to provide fluid flow technical services to the global oil and gas production market over the next 25 years.
The center will provide opportunities for company-led industrial projects, development work with subject matter experts, hands-on training for the industry and academic research.
Focused predominantly on the $62.4 billion (£50 billion) per annum global subsea sector, which is already home to approximately 370 companies in Scotland, the CoE will also offer potential benefits to companies in other sectors such as nuclear power, food and drink, aerospace and renewable energy.
The announcement comes during a visit by Economy Secretary Keith Brown to the Scottish Enterprise Technology Park in East Kilbride where the new facility will be built over the next two years.
“In February last year we committed to supporting more oil and gas firms to deliver new innovative projects to help protect and sustain the future of the sector in Scotland,” said Linda Hanna, managing director of strategy and sectors, Scottish Enterprise. “Our £4.9 million contribution was the catalyst behind NEL securing over £11 million of funding from its parent company, ensuring the skills and expertise at NEL are anchored in Scotland for the long-term. This new facility will offer research facilities and a breadth of capability unmatched anywhere else in the world, supporting Scotland’s oil and gas sector to maximize its global competitiveness and position Scotland as a global leader in multiphase flow measurement. It will play a key role in the delivery of our subsea action plan launched earlier this year.
“NEL, part of the TÜV SÜD Group, is a forward thinking, ambitious organization which, through our account management support, we are working intensively with to help deliver its growth ambition. This latest support builds on our previous assistance around financial readiness, organizational development and management training and I look forward to continuing to working closely with the management team to realize future growth plans.”
“This new technology center will help NEL foster its worldwide reputation as leader in multiphase and wet gas flow measurement testing, operating the only global facility offering full range of flow rates and high pressure capabilities,” said Michael Valente, CEO of TUV SUD UK’s overall business. “Our new investment will underpin technological advancement in this industry and will also bring competitive advantage to the very strong UK flow measurement instrumentation sector as it seeks markets beyond the borders of the EU. We appreciate the ongoing support which Scottish Enterprise provides to our business to achieve our aims.”
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