The takeover of a leading Dundee engineering firm could lead to ”significant” job opportunities in the city.
Aberdeen international oil and gas services firm Rigmar Services has acquired a majority share in Riverside Engineering, which will now be rebranded as Rigmar Fabrication Ltd.
The new company has already secured a multimillion contract to upgrade a rig in Dundee for a US drilling firm operating in the North Sea.
Riverside Engineering employs 40 people at its factory at the Port of Dundee and the firm boasts an international reputation thanks to a long and successful track record of providing specialist pipework and general fabrication services to some of the biggest companies in the world.
Rigmar Services director Rob Dalziel said it is hoped the company will expand in coming months.
He said: ”We have worked well with Riverside for a number of years and we recognised there was an opportunity to utilise the facility and the knowledge within the business to attract the oil and gas offshore and renewables market.
”We were looking for an established company with a highly-skilled and experienced team to develop our plan to expand into the south and develop our vision to create one of the UK’s premier jack up ports in the city of Dundee.
”This acquisition secures our long-term commitment to develop our business in Tayside.”
Riverside Engineering’s managing director Gary Mitchelson will continue his role with the newly-established Rigmar Fabrication.
He said: ”The decision to move forward together is the first step towards an exciting future for the business.
”I will enjoy the challenge of continuing to grow and develop into new markets, such as renewables, which is set to provide a substantial number of job opportunities for the local area.
”Rigmar has been a valued customer and joining forces creates a skilled workforce and a strong, talented team.”
Dundee and the Port of Dundee have already been recognised as a key asset in Scotland’s National Renewable Infrastructure Plan and is earmarked to play a vital role in the future development of a comprehensive supply chain to support Scotland’s emerging offshore wind industry.
Riverside Engineering was founded in 1983 and taken over by Mr Mitchelson in 1999.
Launched in 2008, Rigmar Services provides a range of specialist oil and gas support services globally, including rope access and construction engineering.
The acquisition of Riverside Engineering will allow Rigmar to expand its business into the Dundee area and further develop the current fabrication facilities at Prince Charles Wharf to provide a premier jack-up port in the city for rig upgrades.