Mechanical engineering group, EnerMech Ltd, has secured a £20 million ($32.9 million) contract to supply tools and rental equipment to Wood Group PSN.

The five year contract covers the UKCS and 12 jobs will be created by the Aberdeen company as a result of the contract win.

The deal includes the supply and rental of plant and equipment, including generators, air compressors and lifting and rigging equipment, the supply of hand tools and consumables and the repair, service, maintenance and storage of Wood Group PSN owned equipment.

EnerMech has invested £1.5 million ($2.5 million) on new air compressors, generators and tools and spent a further £400,000 on a new workshop at their Scottish headquarters to service the contract.

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Doug Duguid, managing director of EnerMech, said his company’s commitment to investing significant capital in new equipment and site facilities was a major driver in securing the contract, the largest in the firm’s three year history.

Mr Duguid said: “Our policy of continual investment in new equipment, technologies and in the latest interactive web-based systems which give clients 24-7 visibility of their assets, gives us a clear advantage over competitors.

“We have completed some ad-hoc work on behalf of Wood Group in the past but this deal signals what I hope will be the start of a long and mutually beneficial relationship, which should offer up further opportunities for both companies.

“Winning this award is a clear indication that Wood Group PSN trusts us to provide a high quality service, delivered by first class personnel and backed up with our extensive on-site facilities which are second to none in the north east of Scotland.”

The Wood Group PSN success follows other major deals announced recently by EnerMech, including an £8.2 million ($13.5 million)crane operation and maintenance contract with BP Exploration in Azerbaijan, a £7.5 million ($12.3 million) contract from Cape Industrial Services to provide plant and equipment support in the Dutch North Sea and £1 million plus deals with Acergy/Subsea 7 and Petrofac.

(GK/KMcA)