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Aker boosts its subsea technology output

20th April 2012

Aker announces investments worth USD 87m in subsea production technologies

Aker to invest USD 87 million in new subsea technologies

International oil service group Aker Solutions is planning to double the capacity of its subsea manufacturing pants in Tranby, Norway and Port Klang, Malaysia, it announced on Friday.

Some NOK 500 million (USD 87 million) will be invested in its subsea business in response to a wave of existing orders and recognition of the growing market demand, said the company.

The investment should increase Aker’s market share growth within subsea production technologies, including subsea trees, control systems, pumps and work-over systems, according to the statement.

The investments include the addition of brand new machines and a physical expansion of the facilities in Port Klang, Malaysia, and Tranby, Norway. The new service base in Malaysia will support projects in the Asia-Pacific region.

"The subsea market has strong fundamentals and this steady growth is expected to continue. We are now preparing for expansion in all markets and regions and these investments give us great momentum. They will also increase our capability to serve our clients and our ability as their preferred partner", said Alan Brunnen, executive vice president of Aker Solutions' subsea business area.

Approximately 80 per cent of the investments will be made this year, including the purchase of new machines, equipment and tooling. The remaining investments will continue throughout 2013 and 2014.

In the past, Aker Solutions has invested heavily in Malaysia, which is their deepwater hub in the Asia Pacific region. This includes the company's manufacturing centre in Port Klang close to Kuala Lumpur which employs close to 800 people and a 600-strong front-end, design and engineering hub in Kuala Lumpur.

The Tranby facility outside of Oslo, is growing rapidly and employs 630 people, acting as the centre of excellence for Aker Solutions' subsea operations.

The new service base in Labuan Federal Territory in East Malaysia will support the installed and future deepwater projects in the Asia Pacific region and will open in July this year. Aker Solutions has two other subsea service bases in the Asia Pacific region; one is located in Perth, Australia, and the other in Kakinada, India.