TPi May 2017

business & market news

Research highlights diversification opportunities for Scotland’s oil and gas sector

Offshore grouting specialist FoundOcean first entered the offshore wind industry in 2010, following a 50-year history in oil and gas. From its European offshore service base in Livingston, UK, the firm has secured global contracts within the growing off- shore wind sector, which now accounts for around 50 per cent of its revenues. Andrew Venn, FoundOcean sales director, said, “We realised that offshore wind was a market that offered us a diversification opportunity right on our doorstep and we identified that there was a gap in the market for companies, like ourselves, able to offer competitive and innovative solutions. Entering the offshore wind sector is challenging but get it right and it can be a long-term part of a company’s strategic vision with excellent global prospects.” Ten years ago, manufacturing firm Flowline Specialists also expanded into the renewables sector. Its recent key projects include Gwynt y Môr offshore wind farm, SEM REV marine renewable energies test site and the Bay of Fundy tidal turbine. Managing director Jim Smith com- mented, “At Flowline Specialists we realised that in order to grow our company we would require to achieve two goals. Firstly, expand our products and services geographically. Secondly,

A new guide aimed at Scotland’s oil and gas supply chain to maximise opportunities in additional markets has been published by Scottish Enterprise. The economic development agency’s Oil and Gas Diversification Opportunities guide is accompanied by a series of factsheets that profile opportunities in ten growth markets, including offshore wind, heating and cooling, oil and gas decommissioning, and nuclear decommissioning. Maggie McGinlay, director of energy at Scottish Enterprise, said, “Whilst the North Sea will continue to have a long term future for Scotland’s oil and gas sector, the current global challenges have highlighted the need for supply chain companies to leverage their skills and experience built up over the last 50 years to target opportunities in other sectors. Through the Energy Jobs Taskforce we have prioritised our support to help them do just that. “The new guide and factsheets aim to provide companies with an understanding of the main diversification opportunities and how they can maximise them to protect jobs, skills and investment in Scotland. “It complements our existing diversification support to companies such as our Offshore Wind Expert Support Service.” ADS acquires PTI Advanced Drainage Systems, Inc (ADS) has acquired the assets of Plastic Tubing Industries (PTI), a manufacturer of HDPE pipe and related accessories, for $9.5mn. The transaction is expected to be accretive to ADS’s net income and adjusted EBITDA in the first full year. “We are very excited to announce the acquisition of the PTI assets, which further increases our customer base

Maggie McGinlay

diversify into other industrial sectors, preferably new growing industries. We focused on our core products and skills then tried to match them into other sectors. Technology transfer, innovative solutions, keeping an open mind and thinking outside the box are key to success.” The new diversification guide contrib- utes to Scottish Enterprise’s overall aim of encouraging companies to look at new opportunities to maximise growth. It builds on the series of 50 Oil and Gas Opportunity Country Guides launched last year.

Scottish Enterprise – UK enquiries@scotent.co.uk www.scottish-enterprise.com

in Georgia and Texas, while adding production capacity to the existing ADS manufacturing facilities in Florida, to better serve growing demand in the region. PTI had sales of approximately $11mn for the year ending 31 December 2016. Advanced Drainage Systems, Inc – USA www.ads-pipe.com

and capacity in the growing Southeast region of the United States,” said Joe Chlapaty, chairman and chief executive officer. “PTI is a highly complementary business, carries a strong brand and has exceptional customer loyalty dating back more than 40 years. We welcome the PTI team to the ADS family.” With the acquisition, ADS will increase its US manufacturing footprint

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TUBE PRODUCTS INTERNATIONAL May 2017

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