NEL establish subsea centre of excellence in Scotland
With our support, TÜV SÜD Limited (NEL) are opening a centre of excellence in East Kilbride, establishing Scotland at the forefront of subsea innovation.
Our £4.9 million research and development grant will help NEL and Munich-based parent company, TÜV SÜD Limited, develop a new centre of excellence for subsea development.
The unique facility will secure Scotland's place at the centre of global innovation in multiphase flow measurement.
NEL, a leading provider of research and development, consultancy and testing for the oil and gas industry, will invest £11.1 million, safeguarding 82 jobs and creating at least 17 new roles.
The state-of-the-art centre will offer a test range beyond anything currently available in the world, allowing NEL to provide premier technical services to global oil and gas markets over the next 25 years.
This new facility will offer research facilities and a breadth of capability unmatched anywhere else in the world, supporting Scotland’s oil & gas sector to maximise its global competitiveness and position Scotland as a global leader in multiphase flow measurement. It will play a key role in the delivery of our subsea action plan launched earlier this year.
Linda Hanna, managing director, sectors & strategy, Scottish Enterprise
The centre will also provide opportunities for company-led industrial projects, development work with SMEs, hands-on training for the industry and academic research.
Bright future for oil and gas supply chain
Welcoming the announcement, Keith Brown, Scotland's economy secretary, said:
"It is a testament to the international standing of the oil and gas sector in Scotland that the company has chosen to make this investment. It also reflects the bright future that the oil and gas industry and its supply chain can enjoy, especially when supported by innovations such as this centre for excellence.
"When complete, the centre will place Scotland as a world leader in this exciting field. This will not only help the oil and gas sector to maximise economic recovery, but could have wide-ranging benefits for the food and drink, renewable and aerospace industries, supporting sustainable growth across the Scottish economy."
Although focused on the global subsea sector, which is worth £50 billion each year and supports around 370 companies in Scotland, the new centre will also potential benefits to a range of other sectors, including nuclear power, food and drink, aerospace and renewable energy.
"An enormous boost"
Brian Millington, NEL's managing director, said:
"This is fantastic news for NEL and the investment from both Scottish Enterprise and our parent company, TÜV SÜD, demonstrates their confidence in NEL’s future and that of the oil & gas sector.
"This will be an enormous boost for NEL’s business given all the oil & gas sector challenges of recent years, and will represent a superb opportunity to maintain and enhance NEL’s profile of a genuine world-leader in flow measurement."
In 2016, we committed ourselves to supporting more innovation projects in the oil and gas sector to protect and sustain the sector in Scotland.
Our investment in NEL's new centre of excellence will help Scotland deliver innovative new services, support increased diversification into other sectors and improve the global competitiveness of Scotland's oil and gas sector.
Delivering on the aims of the Energy Jobs Taskforce, Scotland's enterprise agencies contributed £7 million to support oil and gas innovation projects worth £16 million (up to end quarter one, 2016/17).
Our previous support for NEL has included help to reach new markets, with the new innovation centre further boosting the company's global reach.
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Read our subsea action plan