US oilfield giant chooses Gateshead for R&D base

Global oilfield equipment manufacturer and engineering provider, AXON Energy Products, has chosen Gateshead to be its next European business location, bringing up to 40 skilled engineering and research & development jobs to the area.

The American-based company - which specialises in pressure, well intervention, drilling, downhole and tubular products, as well as rig concept and design - has set up a specialist research and development facility in Team Valley, Gateshead.

The move has been helped by the inward investment team at NewcastleGateshead Initiative and supported by the Let’s Grow Regional Growth Fund (RGF) and Gateshead Council.

The R&D facility will concentrate on development and testing for new equipment across the AXON product groups. Products currently under development are top drives, and valves; an extensive portfolio is planned for future development.

Gary Stratulate, CEO, AXON Energy Products, said: “After visiting the North East England area, it was clear that the region’s skills, work ethic, academia, and infrastructure create an ideal location for our new R&D facility. We’re excited about further developing AXON’s R&D activities to meet the growing demands of our dynamic industry.”

Catherine Walker, director of inward investment at NewcastleGateshead Initiative, added: “We’re delighted with AXON’s decision to base its European operations in Gateshead. Its presence will further strengthen our world-renowned reputation for innovation in research and development, particularly within the offshore and marine sector. The additional skilled engineering jobs created and the potential benefits to the existing supply chain will be a welcome boost for both the local and regional economies.”

The arrival of AXON is also a great example of how the Regional Growth Fund is positively contributing to the growth of the offshore and marine sector in NewcastleGateshead. The company was awarded £300,000 from the Let’s Grow Fund to support the set up of the global research and development operation.

Simon Allen, senior project manager of Let’s Grow at BE Group, said: “Let’s Grow is there to support projects and programmes that are using private sector investment to create economic growth and sustainable employment. This £30 million grant programme runs until December 2014 and will create and safeguard over 2,200 jobs, as wells as stimulating business investment of over £120 million.

Leader of Gateshead Council, Mick Henry, said: “The offshore energy sector is one where this region really has the potential to demonstrate its competitive edge. This is exactly the sort of success that we created the Inward Investment Team to secure, delivering high quality jobs and major economic benefits.

“We’ve already been supporting AXON in their move and we look forward to working closely with this exciting business for many years to come.”