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John Wood Group, which owns Gateshead-based Pyeroy, aims for further growth
THE owner of a specialist North-East industrial coatings firm, founded 40 years ago to maintain ships in the region's famous shipyards, could create new jobs as it looks to continue its expansion.
John Wood Group (JWG), who last month took over Gateshead-based Pyeroy, says it wants to exploit new markets.
The multinational company, which has three business divisions and provides engineering and construction management for oil, gas and renewable energy projects, says it will use Pyeroy's expertise of applying protective coatings to new Royal Navy aircraft carriers and the Forth Rail Bridge to expand its global operations.
Pyeroy, formed above a DIY shop in 1973, employs about 400 North-East workers in Gateshead and Billingham, near Stockton, and JWG confirmed existing staff would remain in their posts and play a key role in building the company's future success.
JWG bosses were speaking after revealing its half-year results for June 30, which showed group revenues had risen to £2.2bn, with pre-tax profits up nearly 19 per cent to £155m.
Its engineering division, which includes subsea and pipeline work, increased revenues to more than £625m, while its PSN oil and gas project maintenance arm, which has secured contracts with Conoco Phillips, Nexen and Total, reported rises in revenues and pre-tax profits.
Bob Keiller, JWG chief executive, said the company expected to meet its financial targets and was positioned to strengthen its order book.
He said: “We are seeing new business opportunities driven by people working more closely together.
“Activity remains healthy and we believe we are well positioned to grow in the future.”
JWG took over Pyeroy in July, moving the company into its PSN division, and bosses praised its work in the offshore engineering, construction and maintenance sectors.
Robin Watson, chief executive of Wood Group PSN, said: “Pyeroy has an excellent track record of supporting the operational needs of major oil and gas, marine, and rail customers and has a high quality, highly trained workforce.
“The acquisition marks a strategic move into specialist coatings, access services and fabric maintenance which broadens our service offering to oil and gas customers.
Despite moving into JWG's family of businesses, Pyeroy, who painted protective coating on a forward navigation bridge for the Royal Navy's new Queen Elizabeth Class aircraft carrier fleet, is still headed by managing director Hugh Pelham.
Mr Pelham said: “We have room for growth in oil and gas sectors and the skills and experience to complement Wood Group PSN, and will be able to offer a broader service.”
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