Aker Solutions to invest in Malaysia

International oil service group Aker Solutions will invest US$87 million (RM266 million) in its subsea business in Malaysia and Norway.

This investment is set to double the capacity of its manufacturing plants in Port Klang and Tranby in addition to establishing a new service base in Labuan that will support projects in the Asia-Pacific region.

"These planned investments are a response to a wave of existing orders and recognition of the growing market demand.

"Aker Solutions ability to serve its current and future clients will be improved and this development will facilitate market share growth within subsea production technologies, including subsea trees, control systems, pumps and work-over systems," the company said in a statement today.

It said the subsea segment of the oil and gas industry was growing rapidly and expected to develop exponentially over the next few years.

"Of Aker Solutions' 23,500 employees, almost 7,000 are employed within the subsea business, a number which is set to increase due to this expansion," it said.

Approximately 80 per cent of the investments will be made this year, including the purchase of new machines, equipment and tooling. The remaining investments will continue throughout 2013 and 2014.

In the past, Aker Solutions has invested heavily in Malaysia, its deepwater hub in the Asia Pacific region. This includes the company's manufacturing centre in Port Klang that employs close of 800 people and a 600-strong front-end, design and engineering hub in Kuala Lumpur.

The Tranby facility in Norway acts as the centre of excellence for Aker Solutions' subsea operations.

The new service base in Labuan will support the installed and future deepwater projects in the Asia Pacific region and will open in July.

Aker Solutions has two other subsea service bases in the Asia Pacific region, namely in Perth (Australia) and Kakinada (India). -- Bernama