Part of wider plan to add 700 staff globally after securing new £90m loan facility with three banks
Engineering group EnerMech to create 700 new jobs globally, including 150 new jobs in Aberdeen, after securing £90 million in new banking facilities.
The Aberdeen-based company has secured new banking facilities with existing lender Bank of Scotland, with Norwegian bank DNB and HSBC also joining to create a “banking club” of lenders to consolidate EnerMech's overseas banking arrangements.
Bank of Scotland remains the lead lender in the arrangement, having refinanced £60 million in loans as part of the wider funding package.
Lloyds Bank Commercial Banking initially invested £24 million in EnerMech when it was established in 2008, increasing its support to £44 million in 2011 and then to £60 million in April of this year.
To date, EnerMech says it has invested £30 million in acquisitions and a further £80 million in organic growth.
EnerMech said the new loan facility will fund investment in new equipment and facilities, and plans to create 200 new UK jobs, 150 of which will be in Aberdeen in the next 12 months.
The mechanical engineering firm, which operates across 25 international locations, said a further 500 new jobs will be crated at its operations in the Asia Pacific region, the Middle East, Africa and Norway.
The company said it will also set aside £15 million for future acquisitions
The expansion plans will grow EnerMech's workforce from 1,800 at present to 2,500.
EnerMech specialises in the supply, maintenance and engineering of cranes, lifting, valves and hydraulic equipment, equipment rental and the provision of training and specialist personnel to the energy industry.
EnerMech finance director, Michael Buchan, said: “The size and international reach of our operation means we have now outgrown a single bank.
“By establishing a banking club we have a dual advantage of pooling the funds necessary to facilitate our projected growth and can also call on a wealth of global financing expertise.
“We have been very happy with the support and service from Bank of Scotland who have been involved since the company was first established in 2008 and we are delighted they remain on board as our lead agent bank.
“This investment and the continued support or our original equity partner, Lime Rock, demonstrates the increased financial strength of EnerMech as it continues to grow both in the UK and international oil and gas sectors.”
Last year EnerMech launched a £40 million US expansion drive in the hope of replicating growth levels it has seen in Europe and the eastern hemisphere.
Up to £9.5 million was to be invested in new process, pipeline and umbilical (PPU) equipment in with another £31.5 million set aside for strategic acquisitions to build on its existing US business.
The company also secured £25 million of new investment last year from long-term private equity backer Lime Rock Partners.