Mechanical engineering specialist, EnerMech, has taken another step in its expansion in to the African oil and gas sector with the acquisition of Cape Town, based Control Valve Technology (CVT).
CVT provide servicing, refurbishment and sales of control and safety valves used in the energy, mining and petrochemical industries. The company has a number of long-term customer relationships across a broad range of industries and has successfully executed projects in South Africa, Angola, Nigeria, Ghana and the Middle East.
The CVT acquisition is part of a three year £20 million investment programme in establishing a strong infrastructure in Africa, which has to date included the acquisition of cranes and load testing business Water Weights International SA, establishing a presence in Nigeria, Ghana and Angola a trading entity in Mozambique and the opening of new regional headquarters and workshop facilities in Cape Town, close to the main container terminal in Paarden Eiland.
CVT’s 19 staff and owner Stephen David will transfer to EnerMech and he will lead EnerMech’s valves operations in Africa, alongside newly appointed Regional Director Jean François Roche, who joined EnerMech in February and is a former managing director of Société Générale de Surveillance in Algeria.
EnerMech Chief Executive Officer, Doug Duguid, said CVT’s strong client relationships would provide EnerMech with quick and efficient market entry in Africa for its valves division, which is one of seven business lines supplied to the energy industry.
He said: “CVT is a profitable business with a highly skilled workforce and strong customer relationships and ideally positioned to help us grow our business, both in South Africa and across sub-Saharan Africa. CVT will be a key building block as we significantly expand our valves business and other business lines in Africa over the next few years.
“The company has existing ties with Saldanha Steel (subsidiary of Arcelor Mittal Steel South Africa), Lesedi Nuclear Services and PetroSA and we will seek to reinforce those relationships, while securing work with other international players who are already aware of our valves expertise in other regions.”
Most of the CVT’s work is with the petrochemical industry but they have also completed significant contracts in mining, iron and steel, power and oil and gas industries.
The deal gives EnerMech access to a facility to support offshore rig repair work at Saldanha Bay in the Western Cape and the company said the new partnership will allow the introduction of other service lines to CVT’s existing client base.
The oil and gas services industry in South Africa is experiencing a massive transformation- with a major push to attract more rig and FPSO work to the country. Saldanha Bay has recently been designated a Free Trade Zone to specifically attract industrial and oil and gas service companies. There are also a number of major of offshore gas, LPG and LNG projects approved for the country – two of which will need significant facilities in the Western Cape. In addition there is expected to be a significant shale gas development in the next few years in the Karoo and the Limpopo regions of South Africa.
CVT Managing Director, Stephen David, said: “Our 20 year track record in the African valve market, combined with EnerMech’s international experience with major operators opens up new opportunities, not just in our own back yard in South Africa, but in many other African states where large-scale oil and gas developments are in the pipeline. We are looking forward to playing a leading role in developing EnerMech’s full potential in Africa.”
Jean François Roche added: “CVT has a solid reputation across the region and will make an immediate impact on our African operations. The investment we are making in a number of African countries demonstrates how important the region is to EnerMech for future growth.
“Our philosophy of establishing a strong local presence and infrastructure, using wherever possible the skills of a local workforce, and investing in training and the latest equipment, will bring long-term dividends both for us and our clients.”