Doing very well indeed; BOOMING OFFSHORE BUSINESS GETS GREEN LIGHT TO EXPAND

Evening Chronicle (Newcastle, England), April 4, 2008

Byline: By PETER YOUNG Political Editor

A BOOMING offshore company has been given the go-ahead to expand its Tyneside base.

Councillors have approved plans by Wellstream International to extend its complex at Walker Technology Park in Newcastle.

Wellstream, which supplies specialised pipework for offshore oil fields, has just revealed bumper profits.

The company was floated on the stock market last May and the first set of results revealed pre-tax profits of pounds 41.7m.

The pounds 35m expansion of the company's worldwide operation up to 2010 will help safeguard 570 jobs in Newcastle and create another 50. A planning application by the company to extend the Walker complex, including a new building to expand testing facilities, has been approved by the city council development control committee. It includes the construction of a new building.

In a report to councillors, Harvey Emms, director of planning, said: "The proposed extensions are designed to improve the throughput and quality control of the completed product."

It follows planning approval for an office extension and two new warehouse buildings last August.

Coun Dave Wood, who represents Walker, said: "Business appears to be booming at Well-stream, which is good for the local economy. They employ a lot of local people and they are good corporate citizens."

The Walker Technology Park was developed 20 years ago to help the Tyne cope with the decline of the shipyards by targeting the emerging oil and gas offshore industries.

The redevelopment of the former dockyard was supported by councillors and Newcastle East and Wallsend MP Nick Brown, now Minister for the North East.

Coun Wood said: "It's been one of the city's success stories and is home to several thriving companies, including Duco and Shepherd Offshore.

"It has succeeded when some other industries have, unfortunately, fallen by the wayside. It's very pleasing to see that it has paid dividends."

Shepherd Offshore operates the quay on behalf of the owner, the city council, which is used by offshore companies such as Wellstream and Duco to load cables and pipes on to specialist ships. In his report, Mr Emms said: "Both these companies are experiencing high demand for their products due to the high price of oil and subsequent exploration for supplies."

Commenting on the company's results earlier this week, Wellstream chief executive Gordon Chapman said: "We've had a fantastic year and the Newcastle site is firmly in our plans."

CAPTION(S):

BIG PROFITS: Wellstream International at Walker, Newcastle