A Chinese decommissioning firm is planning to establish a project base in Scotland.

The stated-owned China Ocean Engineering Shanghai Co (COES) have confirmed their strategic intent to establish a Scottish base in Dundee during a meeting with First Minister Nicola Sturgeon in Shanghai.

The company, which provides services to the marine construction and offshore industry, specialises in offshore construction and decommissioning, ocean going towage, salvage and wreck removal and offshore renewable activity.

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It has been exploring premises and port facilities to determine the best location logistically central to all the ports on the eastern seaboard of Scotland, which will offer the capability and available capacity to serve offshore markets in the UK, Norwegian and Dutch sectors.

Latest forecasts from Oil and Gas UK estimated decommissioning expenditure to reach £17 billion on the UK continental shelf by 2025, while annual decommissioning spend on the Norwegian and Dutch sectors are put at between £400 - £800 million and £650-£800 million respectively.

First Minister Nicola Sturgeon said: "I welcome the announcement that COES intends to establish a base in Scotland. Throughout my visit to China I have been travelling with the message that Scotland is a fantastic place to invest and do business. I look forward to hearing more details of COES's plans in due course."

(LM/MH)