SMD opens new hub with plans to create 52 jobs
SUBSEA robotics firm SMD has launched a new distribution facility as the latest step in an expansion plan that includes the creation of 52 jobs this year.
The 53-year-old company, which was originally a university spin-out operating from a kitchen table, has opened a 15,000 sqft space at New York Industrial Estate to cater for its expanded services division, which has grown in recent years.
The automated spare parts hub replaces a smaller facility at SMD’s Turbinia Works headquarters in Wallsend, where it is also planning to launch three new facilities to accommodate research and development work, services capacity and production of its industry-leading all-electric remotely operated undersea vehicles, in about a year’s time.
SMD chairman Mike Jones said soonto-be published accounts will show the firm generated UK turnover of £54m last year and this year hopes to book around £75m. The growth comes as SMD is eyeing £100m of turnover by 2027 across its rebalanced business – a level it last saw around 2011-2012, prior to a slump in oil and gas prices which changed its direction.
Mr Jones said: “It’s no secret our industry really suffered post the oil and gas price crash in 2014/15 and we set out then to do two things: reposition the business to have more service revenue, as our history had been more about producing big bits of kit but it’s tricky to create a steady business doing that. And the other thing was to invest far more in innovation. We could see the technology moving towards efficiency which meant electric drive and fully electric vehicles. And we could also see the need for more ‘over the horizon’ controls and intelligence on the vehicles.”
SMD has since invested about £5m in its all-electric ‘WROVs’ which are an industry first and described as a “big future” for the firm. The systems use fewer parts and are more efficient – a significant want for SMD’s customers in the offshore renewables market and continued oil and gas work.
North Tyneside mayor Dame Norma Redfearn officially opened the distribution facility. She said: “I am delighted to have been invited to open this facility, especially for a local business that continues to flourish and provide brilliant opportunities for local people.
“SMD has a proud heritage in our borough and has been a valuable employer for our residents for a number of years. It plays an important role in our communities and this new distribution hub will create more employment opportunities for the people of North Tyneside and be a key player in the green energy revolution happening across the North East.”