TPi May 2017

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business & market news
16 TUBE PRODUCTS INTERNATIONAL May 2017
Research highlights diversification
opportunities for Scotland’s
oil and gas sector
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.”
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,
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
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
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
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
Maggie McGinlay