Multi-million contracts boost for Pryme Group ahead of new Tyneside facility launch
With operations across the UK and headquarters in Dundee, Pryme Group provides integrated manufacturing solutions for the oil and gas, aerospace and defence industries.
The business recently announced the creation of a state-of-the-art engineering services division in North Shields, Tyneside, following an initial £9.5m investment.
Located at the Tyne Tunnel Estate, North Shields, the 58,000 sq. ft development has been supported by both public and private sector organisations, including UK Land Estates, North Tyneside Council and the North East Local Enterprise Partnership (LEP).
The purpose-built manufacturing centre will house best-in-class machinery alongside multiple complementary services to allow Pryme Group’s customer base to bring innovative products to market.
Pryme Group has signed master service agreements with two oil and gas businesses and a defence contractor, whilst securing additional new orders for fabrication and machining services for several energy sector clients – with all work to be carried out at the new facility.
Angus Gray, chief executive officer at Pryme Group, said: “We are delighted to see all the hard work that has gone into developing this site over several months now paying off, which will bolster the group’s existing machining and fabrication services for clients locally, throughout the rest of the UK and internationally.
“These significant contract awards from leading clients in the oil and gas and defence industries are a testament to the wide range of knowledge and expertise possessed by our team here in Tyneside.”
Staff have now relocated from nearby Ryton, Tyne and Wear to the Tyne Tunnel Estate with further equipment to be installed over the coming weeks before the site is fully operational.
In addition, the company is actively recruiting for several new personnel, including computer numerical control (CNC) operators, in the Tyneside area.
The business has invested £4.2m to date in new equipment and CNC machinery with new technology and increased efficiencies expected to result in a boost to revenue and improved on-time delivery.
Murray Kerr, chief operating officer at Pryme Group, added: “These important contract awards mark the beginning of what I’m sure will be a very exciting journey for the business, while the increased capabilities brought by our investment in new equipment create scope for larger and more complex projects.
“It has been a tremendous undertaking to develop the building from scratch, but we could not have asked for better support than what we’ve received from our partners at UK Land Estates, North Tyneside Council and the North East LEP.”
In June, Pryme Group acquired Hydratron, a leading supplier of high pressure and flow control equipment to the global oil and gas industry based in Altrincham.
Pryme Group, which now employs 260 people, expects a further 25% growth in revenue in the current financial year, having recorded turnover of £15.6m in March 2018.
Meanwhile, the company has signed an initial 10-year lease at Tyne Tunnel Estate with the option to extend the agreement by five years.
Additional grant funding of £1.35m was provided by the North East LEP, through the UK Government’s Local Growth Deal; allowing UK Land Estates to build the unit in North Shields speculatively at a cost of £4.5m.
Published: 16 October 2018