A Gateshead engineering group has snapped up a Teesside welding company from administrators in a deal to expand its global subsea work.
Express Engineering, the manufacturing, assembly and testing specialist, said it has boosted its offering in the sub-sea engineering market after acquiring the assets of QA Weld Tech Limited. QA Weld Tech specialises in the welding and fabrication of complex pipework to meet demands of the offshore, nuclear, power generation and petro-chemical industries, but the business called in specialists at FRP Advisory after suffering a sustained period of loss-making.
LDC-backed Express Engineering secured the site and the plant and equipment of QA Weld Tech, based on Riverside Industrial Park, Middlesbrough. The transaction to acquire the assets was completed for an undisclosed sum, following the appointment of joint administrators Steve Ross and Allan Kelly of the Newcastle office of FRP Advisory to QA Weld Tech, after it became insolvent.
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Express Engineering, based on the Team Valley, where it manufactures and supplies subsea assemblies, connection systems and subsea production systems to customers around the world, said it intends to retain the current site in Middlesbrough and continue to offer fabrication and welding services under the QA Weld Tech brand.
The company said the acquisition has also supported the transfer of 39 staff to the new entity within the Express Engineering group, which now employs more than 230 staff. It added that the investment expands Express Engineering’s technical capabilities, adding products to its specialist product range while also giving it access to additional markets and customers.
Chris Thompson, chairman of Express Group, said: “The subsea energy sector is a core part of our business and, with resurgent demand for subsea manufacturing expertise and products, the addition and transition to carbon capture equipment is fundamental to our growth strategy.
“We’re pleased to be able to welcome QA Weld Tech into the Express Group. They bring valuable skills and knowledge to the team and join at an incredibly exciting time. Our order book is very strong and we are delivering on our commitment to investing in our people, products and technology to realise our ambitions for the future.”
Allan Kelly, partner at FRP, said: “QA Weld Tech has been established for 40 years and its technical delivery remains highly regarded but has faced challenges in the period since Covid. This sale provides an opportunity to retain that experience and build on the business’ legacy. We wish the employees and Express Group every success in the future.”
