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06 June 2006
Contract makes Dundee jobs safer
A new £3.5 million contract with oil giant BP will help job security for more than 150 employees at the Wood Group factory in Dundee, the company said today, writes Bruce Robbins.
The five-year maintenance deal with BP Exploration Operating Company Ltd. involves offshore and onshore maintenance for gas turbines on the ETAP and Magnus North Sea platforms.

Offshore, Wood Group Heavy Industrial Turbines Ltd will provide maintenance manage-ment services and labour for planned inspections, maintenance and repairs.

Onshore, it will perform component repair and spares management for the turbines from WGHIT facilities in Dundee and Cumbernauld.

A spokeswoman for the Dundee operation told the Evening Telegraph today, “The fact some of the work on the contract will be done in Dundee will help to secure the on-going employment level on the Dundee site.”

A total of 168 people are employed at the company’s Drumgeith Road premises on Baldovie Industrial Estate.

Wood Group has been in Dundee for 11 years with its workforce growing to around 400 by the late 1990s after a £5.5 million investment programme.

Job losses started in 2002, with a decision by the Ministry of Defence to slim down a long-term contract with the firm, leading to 65 jobs going. Another 25 jobs went in 2003 and then a further 54 in 2004.

Last year, 90 of the company’s 225 workers were made redundant, but there has been some recruitment since then.

The company’s business has been affected by an increasingly competitive global marketplace which has seen many jobs going to Thailand.

The Wood Group has three businesses: engineering and production facilities, well support and gas turbine services.

Internationally, the group employs over 16,000 people in 40 countries and has sales of around £1.5 billion.

WGHIT managing director, Kerr Picken said, “We are delighted to have been awarded this contract, which is testament to our proven track record.

“Our focus will be on delivering improved availability, reliability and performance of the gas turbines on ETAP and Magnus.”