UK subsea energy products company Express Engineering has sold off part of its business to focus on expanding its capabilities in the oil and gas market.
Namely, the Gateshead-based firm has sold its aerospace division for an undisclosed sum to Paralloy a Nimbus LLC company, which has operations in Billingham, Middlesbrough and Sheffield as it continues to expand in aerospace and other sectors.
The sale occurred several months ago, but the relocation of jobs and assets from Team Valley to a new facility near Middlesbrough only recently took place.
Express Engineering will use the proceeds to add additional manufacturing capability that will enable it to grow and support customer demand for new innovative products, while improving overall competitiveness.
Gary Thirlwell, MD of Express Engineering, said:
“We have disposed of the aerospace business to focus resources on our core subsea products. Aerospace was a small, albeit profitable division, but is not part of our strategic focus.
“During the last year or two, we have been transforming Express Engineering through a new product strategy and investment in infrastructure that includes a new test and assembly facility. To continue to compete in global markets and provide customers with top quality subsea products and services we need to be fully focussed on that task and sector.
“More large, global companies are outsourcing their manufactured products and sub systems for flexibility and competitiveness and looking to establish long-term partnerships with companies like Express that offer specialist, turn-key solutions.”
Express Engineering has more than 20 years experience in the manufacture, assembly, and test of subsea actuators, connection systems, connector sub-assemblies and mechanical and hydraulic subsea tooling.
“We’re also pleased to see that the skilled workforce, most of whom commuted to Team Valley from Teesside and North Yorkshire, will now be working much closer to home,” Thirlwell concluded.
Since embarking on a refocused business strategy at the end of 2018, Express Engineering has seen sales in the oil and gas sector grow significantly resulting in a jump in revenues to more than £35 million for 2020.