Plexus Holdings has signed a two-year engineering agreement with Cactus Wellhead to develop and qualify a range of wellhead products for offshore energy applications.
Under the agreement, Plexus will provide engineering, analysis and testing services, drawing on its expertise in wellhead engineering and offshore energy applications. Work will be carried out at the company's facility in Aberdeen and is due to begin immediately.
Plexus said it will receive an initial commitment payment of $1.34 million (£1 million), secured by a debenture over the company's assets until the work under the contract has been completed.
The company also expects to generate additional revenue of about $2 million (£1.5 million) over the course of the program, depending on customer requirements, with potential for further revenue if the scope of work expands.
"This work has been awarded to Plexus as a result of our reputation for technology excellence and successful product development and qualification testing over many decades.
"We are very excited and proud to be given the opportunity to take on this work, and I commend the team at Plexus for their dedication and professionalism, which has been instrumental in securing this opportunity.
"Using Plexus' existing engineering capability and testing infrastructure for an international company gives us the opportunity to continue to retain and build our capabilities in Aberdeen at a time when investment in the North Sea has been under pressure,” said Craig Hendrie, CEO of Plexus.
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