R&D programme creates jobs and investment for Scotland
Release Date: 7th December 2009
FMC Technologies Ltd is to receive a £2.8 million R&D Grant from Scottish Enterprise (SE) that will help double the capacity of its Subsea Product Centre in Bellshill, it was announced today.
SE Chairman Crawford Gillies announced the funding during a visit to FMC’s R&D facility in Bellshill and was joined by Jim Mather, Scotland’s Minister for Enterprise, Energy and Tourism.
FMC’s Dunfermline operation will invest £17.6 million in the project over the next five years to support the creation of an Intervention R&D Centre at its facility in Bellshill, creating a number of new jobs.
Intervention systems are used to maintain and prolong the life of subsea oil wells and the work carried out at the R&D Centre will give FMC a lead in technologies that are critical to operating subsea oil wells in the more demanding environments that are increasingly being encountered worldwide.
This is the second R&D project FMC’s Dunfermline operation has undertaken with support from SE. In 2008, a new R&D facility was opened in Bellshill to develop Optoelectronics based products for the “Digital Oilfield” that created 17 new jobs. With today’s announcement, a substantial portion of the company’s global spend on subsea R&D will now be spent in Scotland at these two facilities.
Crawford Gillies, Chairman of SE, said, “The investment by FMC Technologies is very good news for Scotland. This project will help the company maintain its global leadership position in developing technology for the oil and gas sector and will underline Scotland’s position as a centre of excellence for research and development in the energy sector.
“The project is also an excellent illustration of how our R&D programme is helping to have a direct impact on Scotland’s economy.
David Currie, Managing Director of FMC Technologies in Dunfermline, said, “FMC is delighted and encouraged by the support of Scottish Enterprise with the announcement of this R&D plus grant. This support is directly focused in two key areas for ourselves, technology development and the creation and growth of innovative and technically led employment here in Scotland.
“Scott Hamilton, formerly our Engineering Manager at our main facility in Dunfermline, was recently appointed as FMC’s global manager of this new development for Intervention Products and Systems and will be based here at our Glasgow site. Under Scott’s stewardship we have already invested in new infrastructure, created new jobs, and actively expanded our graduate development programs to enable support for this.”
“FMC is the subsea market leader for the oil and gas industry. We are in the business of providing solutions, placing our customers first and keeping them ahead. This grant is another active demonstration of government and industry acting together to the benefit of Scotland’s place in the global market and the development of its workforce of the future.”
Enterprise Minister Jim Mather added: “Innovative companies such as FMC Technologies which are continuing to expand show there are reasons to be optimistic about Scotland’s economic recovery prospects. The creation of 17 jobs in Bellshill is particularly encouraging in the current climate. Backed by R&D Grant support from Scottish Enterprise, FMC can make an important contribution towards sustaining Scotland’s reputation for research and development excellence.”
FMC is the latest company to receive support through SE’s R&D programme, which aims to boost the level of private sector investment in research and development activity in Scotland.
A report, also published today, has revealed that since its launch in 2004, Scottish Enterprise’s R&D programme has helped to generate more than £400 million of investment in research and development activity in Scotland and by 2019, will contribute over £640 million of additional value to the Scottish economy.
An independent evaluation of Scotland’s Enterprise’s (SE) R&D programme published today looked at the results of the agency investing £55 million in 55 projects over the past five years. The evaluation concluded that the programme has helped to generate a further £350 million of private sector investment, creating 1,300 R&D jobs with the potential to support 28,500 additional jobs in associated activities by 2019.
Mr Gillies continued, “The evaluation highlights the significant success the R&D programme has had in terms of job numbers and investment generated as well as the direct impact it is having on the Scottish economy. More than two-thirds of the private sector investment has come directly from company headquarters beyond Scotland, highlighting Scotland’s growing reputation as a centre of excellence for the development of new ideas and technology.”
The R&D programme was established to help address historically low levels of private sector investment in research and development, together with other government support mechanisms such as the availability of R&D tax credits.
The SE has invested more than £55 million in these projects over the past five years, which has generated a further £347 million of investment by the companies directly.
The report also highlighted that almost 60% of the projects would not have happened in Scotland without SE’s support, and a further 20% would have gone ahead but only on a much smaller scale. More significantly, for those projects now complete, over two-thirds of the companies assisted have created new intellectual property as a result of the support, enhancing their Scottish R&D offering to their headquarters and improving their chance of securing additional R&D projects in the future.
At the time of the evaluation, 20 projects had been completed, with a further 35 currently in various stages of implementation.
Mr Gillies added, “These projects would simply not have happened in Scotland without our support, but with our support they are now embedded within our economy, creating much needed jobs and investment.”
Ends
Notes to Editors:
- The independent evaluation of Scottish Enterprise’s R&D Grant programme was completed by Frontline Consultants. For a copy of the report, please contact the Scottish Enterprise press office on 0141 228 2019.
- FMC Technologies, Inc. (NYSE:FTI) is a leading global provider of technology solutions for the energy industry and other industrial markets. The Company designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. Named by FORTUNE Magazine as America’s Most Admired Oil and Gas Equipment, Service Company in 2008, FMC Technologies employs approximately 10,400 people and operates 19 manufacturing facilities in 14 countries.
- Established in 1975, the Dunfermline manufacturing facility, which has engineering support offices in Glasgow and Aberdeen is one of six major subsea production sites globally with over 600 people based in Scotland. The company’s core product range includes subsea equipment known as Christmas trees and wellheads; used to assist in the extraction and of oil and gas below sea level.
For further information, please contact:
Neil McInnes, Senior Communications Manager
Scottish Enterprise
Tel: 0131 313 6196 / 07881 5177712
Email:
FMC Technologies contact
Lisa-Marie McGahey, Communications Coordinator
FMC Technologies
Tel: 01383 742331
Email:
