Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Mearns engineering firm plans to hire more staff after substantial investment

Kincardine Manufacturing Services Ltd, have taken delivery of a CNC machine from Japan. Sales manager Grant Adams and director Graham Truscott.
Kincardine Manufacturing Services Ltd, have taken delivery of a CNC machine from Japan. Sales manager Grant Adams and director Graham Truscott.

A north-east engineering firm will hire additional staff after a six-figure investment in new machinery.

Stonehaven-based Kincardine Manufacturing Services (KMS) are hoping more oil and gas industry projects kick into gear next year after making hefty investments in new kit.

KMS has taken delivery of a new computer numerical control (CNC) machine made by Japanese firm Mazak.

It is the second piece of Mazak machinery that Stonehaven-headquartered KMS has bought this year, at a total cost of £800,000.

The company estimates that the new arrival alone will generate revenues of £400,000 to £500,000 per year.

It will help the KMS make components for wellheads and blowout preventers.

Machinists jobs

If demand matches expectations, KMS, which has about 45 people on its books, will be looking to hire seven new CNC machinists early in 2021.

Established in 2001, KMS produces and delivers complex components to a range of blue-chip clients in the oil and gas sector, including Schlumberger and Weatherford.

KMS sales manager Grant Adams and director Graham Truscott with the new piece of equipment.

Two years ago, London-listed wellhead technology firm Plexus bought a 49% stake in the company for £735,000.

The deal gave Plexus access to KMS’s machining capability in support of its research and development projects.

KMS founder and director Graham Truscott and his immediate family retained the majority shareholding.

Business slow-down

Mr Truscott said KMS had remained open for business throughout the Covid-19 pandemic but that activity had “slowed down” to a crawl in the last three months.

“These last three months have been the quietest I’ve ever seen the oil industry,” he said, adding that the company had put 15 employees on furlough and started operating with one shift.

KMS laid off six people due to the deterioration in market conditions brought on by the pandemic.

Revenues have been cut in half during the three months and are likely to total £4.5 million for the full year, £1m lower than in 2019.

But Mr Truscott expects KMS to breakeven this year, adding 2020 was “not a disaster”.

Uptick expected in 2021

He hopes breakthroughs with vaccines will spark an uptick in project work next year, restoring revenues to 2019 levels.

He said: “I think most oil majors will bring people back to the office in January and when that happens projects will start kicking in.

“It’s very difficult to run an oil company when people are at home. In this industry you need to have people in the office.”

Mr Truscott also said KMS was getting inquiries from companies which had shut down their own machine shops.

Sales manager Grant Adams said the investments in new CNC equipment would position KMS to take advantage of any oil and gas industry revival.

Mr Adams said the equipment would help KMS serve its own clients and those of Plexus, which last month signed a licensing deal with Cameron, a subsidiary of Schlumberger, for its POS-Grip wellhead technology.

Cameron agreed to pay royalties based on wellhead sales and rentals and a £370,000 lump sum.

Mr Adams said: “It is our hope that this transaction will also lead to further manufacturing capacity opportunities for KMS.”

Already a subscriber? Sign in

[[title]]

[[text]]