17/05/10

Subocean Expands into Europe

Leading UK renewable energy services group Subocean is expanding into Europe as part of its strategy for future growth. Subocean, which specialises in subsea construction and burial solutions, is opening an office in Germany and appointed a business regional manager for the area.

The Aberdeen-headquartered company has also further bolstered its team by appointing a wave and tidal manager to reinforce the company’s position in marine renewables.

Managing director John Sinclair said: “Subocean has experienced rapid growth over the past two years and, whilst we have a UK order book for £105million in 2010 and already £55million for 2011, we also want to consolidate our position for future growth.

“One of our key focuses this year is to ensure that we have a robust organisation and infrastructure in terms of having factors like the right people and IT systems in place. Setting up a presence in Germany, which is second only to the UK at the forefront of global renewables but close to the European decision makers, is a fundamental part of this.

“Throughout the past three years we have expanded our asset fleet to meet the UK market demands. It is also important from a business perspective to not rely only on the UK market and this is why it is important to investigate new markets and understand how they work. For example, we now have Round Three windfarm projects planned in the UK but they could slip and we do not want to be in the position where our vessel assets are sitting idle. In light of this, Subocean sees the US as another potential opportunity and we anticipate opening an office there in the next two to three years.”

Subocean’s Germany office will be located in Bremenhaven and will be headed up by business regional manager Jan Roos who will focus on Northern Europe covering Germany, Holland, Belgium and France. Jan has many years of global subsea construction experience including cable installation with burial covering the Oil & Gas sector, Subsea Fibre Optic Telecommunication sector and in the past five years the Offshore Wind Renewable Energy sector.

John said: “Jan brings considerable industry knowledge and experience to Subocean through his work in previously setting up an office in Germany and although he is a native of Netherlands, he will help Subocean overcome potential language barriers. Jan will initially focus on establishing Subocean’s presence in Germany in particular and at the same time develop Northern Europe business contacts and relationships.”

Taking up the position of wave and tidal business development manager is Perry Symons. Perry, who also has more than 20 years cable installation experience, has been working mainly in the developing wave and tidal sector in the past five years.

John said: “We foresee an increase in engineering, procurement, installation and commissioning (EPIC) work opportunities in the wave and tidal sector, and this new developing sector could also bring a lot of subsea maintenance work. On top of our expertise to install cables, we can offer EPIC and provide the whole package for wave and tidal clients.

“Our aim here is also to keep as much of the supply chain work in Scotland as possible and Perry will be focusing on developing wave and tidal business opportunities to this end across Europe.

Award-winning Subocean is considered a major role player in the renewables’ industry, having successfully transferred its oil and gas expertise into the market. The company recently secured £17million equity investment from LDC, the private equity arm of Lloyds Banking Group as part of a £42million fundraising in one of Scotland’s biggest private equity deals announced at the end of last year. Subocean is using the investment to double the business in two years and achieve a turnover of £300million by 2014.

A year ago, Subocean doubled the size of its Aberdeen premises at Westhill’s ‘surf city’ in Arnhall Business Park and created 75 new jobs which increased to 90 by the close of 2009. The company has continued to grow and now employs 100 onshore and 250 offshore, with up to 100 further job opportunities expected in 2010 both onshore and offshore.