The Aberdeen-headquartered company has reached an agreement with Forth Ports to establish a new metal recycling and decommissioning base at the port, with both parties investing in the project.
Under the plans, an existing two-acre site will be redeveloped to create a new purpose-built concrete pad. In total, some £5 million will be pumped into the development, which covers construction costs, the long-term lease of the site and the purchase of plant and equipment.
John Lawrie Group will use the base to dismantle redundant offshore infrastructure brought ashore during oil and gas decommissioning projects and also for metal processing operations.
Due to be up and running in early 2020, the facility will be operated by the company’s metals division. While about ten jobs are likely to be created initially, the firm said there was the prospect of further posts being added as operations at the facility develop.
Dave Weston, managing director of the John Lawrie Metals business, said: “This is a significant investment for John Lawrie Group and comes 12 months after we acquired a metal recycling facility on Shetland.
“It underlines our commitment to support the oil and gas decommissioning sector and forms part of our long-term strategy to develop John Lawrie Group’s operations across the country.
“Operating facilities in close proximity to Scotland’s major ports also acknowledges the strategic importance we see them continuing to play as part of the country’s infrastructure.”
He added: “Over the coming 12 months we will be working closely with all of the relevant authorities and licensing bodies as we finalise plans for this development in Dundee.”
David Webster, Forth Ports’ senior port manager for Dundee and Leith, said: “This is a major milestone in Forth Ports’ strategy to develop a full service oil and gas decommissioning hub here at the Port of Dundee.
“We are excited to be working with John Lawrie Group to develop this new decommissioning facility. We have worked closely together on a number of projects and the company’s commitment to reuse and recycling and its strong track record is evident.
“The opening of the facility in early 2020 will be a very visible sign of the Port of Dundee’s ambition to support the North Sea oil and gas decommissioning sector.”
Led by Forth Ports and public-private partnership Dundeecom, work is underway to position the city as an integrated hub for North Sea oil and gas decommissioning work.