Partner Article

Norwegian firm brings Arctic opportunities

The expansion of a Norwegian company into the region is to be used to help the North East’s engineering firms cash in on new opportunities in the Arctic.

Industrial pipe-cleaning business Pipetech, based in Stavangar, has announced plans to set up a presence in the North East to service the North Sea oil and gas sector.

However, the company’s move will also correspond with a drive by Norwegian businesses with interests in the Arctic to develop more trading ties with the North East.

Pipetech’s move into the region has been part-funded by a consortium of organisations in North Norway which is keen to do business with North East engineering firms.

As well as building a company employing around 10 people on these shores, Pipetech has also been charged with acting as an ambassador for the Arctic region.

Under the terms of its funding, it is expected to identify companies which would benefit from being engaged with the exploration, drilling and extraction of oil and gas in the Arctic.

It will also seek to recommend the Arctic region to businesses and introduce them to business ambassadors from that area.

Meanwhile, plans are currently being drawn up by oil and gas services body NOF for a trade visit of North East engineering firms to the Arctic region in April.

Pipetech’s move to the UK is partly driven the fact that potential North East clients are only a one-hour flight away, alongside the current favourable exchange rate for exporters.

Mike Pedersen - head of the Norwegian Collaboration Centre (NCC) in Newcastle – said Pipetech’s role as an ambassador for the Arctic region could present huge opportunities to North East firms.

“There are three major developments in the Arctic at the moment and the message that I got from my last visit is that if we don’t bring people from the North East out there soon, then huge opportunities could go to other areas such as Russia.”

Last year the NCC launched an online portal to help develop more two-way trade between Norwegian and Northeastern companies and has since seen thousands of companies sign up.

This was posted in Bdaily's Members' News section by Ruth Mitchell .