Alex Salmond has announced the commencement of work on an expansion of GE’s Oil & Gas Centre of Excellence in a project worth £9m.

Builders have moved onto the Montrose site and work is already taking place to prepare the ground before construction begins. Work is expected to be completed early next year.

The project will create 40 new jobs by 2013, according to the government.

The First Minister made the announcement following a round table discussion with representatives from the Oil & Gas industry during his visit to Chicago last week.

Mr Salmond said: "When GE Oil & Gas centralised its operations at Montrose in 2009, it was with a view to having additional capacity to meet both customers' expanding needs and GE's anticipated Services growth in the European region. Now this ambitious £9m expansion further demonstrates the company’s commitment to the Montrose area and Scotland’s important role in GE Oil and Gas’s future."

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Rod Christie, vice president of Subsea Systems at GE Oil & Gas, said:

"This larger, more capable facility and the resultant extended service offering is a reflection of the company’s long-term commitment to Scotland. It is also further indication of the sustained growth in business that we have seen globally over the last two years."

Lena Wilson, Chief Executive of Scottish Enterprise, said:

"The Oil & Gas Strategy for Scotland, which was launched earlier this year, identified the crucial role that the sector has to play in our future long-term economic success. Working with inward investors like GE and indigenous Scottish companies to support their operations to grow in key areas of the sector – such as subsea manufacturing – will be key to this."

(IT/GK)