SeaDragon 'chain' gangs work
Apr 15 2009 by Jez Davison, Evening Gazette
SEADRAGON has demonstrated the strength - not the weakness - of Tees Valley’s supply chain, according to local businesses.
They say the joined-up nature of chains in the Tees - such as that put in place to supply SeaDragon - could hasten the area’s recovery from recession.
With the economic downturn beginning to bite, company “clusters” are using their joint muscle to bid for more lucrative contracts.
Among them, Tees Alliance Group (TAG) - the consortium that headed up the SeaDragon project - is leading another bid to bring a major oil and gas project to the region. If successful, it could generate hundreds of jobs and millions of pounds for the local supply chain.
Bosses have backed the collaborative approach and say clusters are a gateway to international trade.
Darlington-based engineers Mech-Tool said its work on the SeaDragon project, which involved the construction of two giant oil rigs, was putting it in the shop window for further work. Although the rigs will now be built in Singapore, Mech-Tool won a £4m contract to build the accommodation module for the oil and gas platform.
Phil Bullock, director and general manager of the firm’s modular products division, said: “SeaDragon taught us a lot. We have put it on our CV of accommodation projects.”
He said the joint purchasing power of clusters such as NOF Energy - of which Mech-Tool is a member - could help smaller firms get a slice of large-scale projects.
“It’s difficult for SMEs to bid for some of these projects on their own,” he said.
Stokesley-based construction consultancy, Armstrong Davis Associates (ADA), said networking clusters help to generate around 80% of its overall business. The company is a member of several groups including oil and gas specialist NOF Energy, which has 169 members in the North-east including 44 in Tees Valley.
ADA’s business development manager, Jeremy Wright, said: “Within NOF’s membership there are companies that work all over the world. Networking groups are the best way of making new contacts.”
Although clusters aim to boost trade between members, they are also keen to bring work in from outside.
NOF has around 7,000 contacts globally and said there were “international opportunities” for Tees Valley’s oil and gas and nuclear supply chains.
Tees Valley is home to a number of industry clusters which include:
PROCESS INDUSTRY
Represents around 60% of Tees Valley’s GDP and spans pharmaceuticals, fine chemicals, specialty and biotech companies. In the North-east the sector is forecast to grow from around £10bn to as much as £14bn during the next ten years.
OIL, GAS AND ENERGY
Over the last few years NOF has been able to secure more than £30m worth of additional contracts for its circa 300 membership.
CREATIVE AND DIGITAL
Tees Valley creative firms underpin a £1.1bn regional industry and are set to generate more than 9,000 jobs in the next five years.
RENEWABLES
Wilton is home to the Centre For Process Innovation, which is aiming to create a world class fuel cell technology hub in Tees Valley.
