New African oil and gas platforms manufacturing site and new jobs

South Africa has just opened its first manufacturing site for production of oil and gas platforms and plans to create approximately 12,000 new jobs.

The opening of the first manufacturing site for oil and gas platforms in the Western Cape region of South Africa marks the emergence of a new industrial sector in the country, focusing on the international oil and gas business. The platform yard has been set up by MAN, and includes all the technology that is needed for the construction of drilling platforms. The plant is to offer 12,000 new jobs in the coming years. MAN's investment in Saldanha Bay, will be in the area of 30 million euros. In addition, a strategic partnership agreement has been concluded between MAN Ferrostaal and the South African government.

The country is thus exploiting a new sector of industry and becoming a market participant in the international oil and gas trade. The fabrication yard for platforms was constructed by MAN Ferrostaal within the framework of offset obligations through the sale of three submarines. It fulfils all technical requirements for newly built production platforms and is the largest project which has materialized within the framework of the South African Offset Program.

Up until now, production platforms for the offshore oil and gas industry in West Africa have been manufactured solely in Europe, the Middle East, the USA and South-East Asia. Due to the heavy demands made on capacities in these countries, there are currently lead times of up to seven years. The new production site in Saldanha Bay will meet the increasing demand for production platforms triggered by the growing West African oil and gas industry and decreases lead times and shortens the towing times for the platforms to a fraction of the time which is currently required.

Due to the sharp increase in oil prices, it must be envisaged that the demands made on production platforms are set to increase further. MAN Ferrostaal is therefore taking part in talks with regard to the construction of a second site for the repair and maintenance of oil platforms in Cape Town. Both projects are of great social importance for South Africa, in addition to their economic significance, as they will lead to the creation of approximately 12,000 new jobs.

At the opening, Dr. Matthias Mitscherlich, Chief Executive Officer (CEO) of MAN Ferrostaal and member of the Executive Board of MAN AG, emphasised the great local added value in the accomplishment of the project: "Three-quarters of all firms commissioned are South African companies and half of all expenditure went to companies which promote the interests of South Africa's black population.” Over 900 people from the Western Cape Region were involved in the nine month construction period, nearly all material used for the construction of the yard came from South Africa.

Saldanha Bay, north of Cape Town, is the deepest and largest natural port in southern Africa. MAN Ferrostaal was the general contractor involved in the development and construction of the fabrication yard there. Atlantis Marine Projects, the South African partner of MAN Ferrostaal, took care of the project development and feasibility studies. The South African company Grinaker LTA, which already has a similar plant in West Africa, will operate the plant. On the 220,000 square metre complex in Saldanha Bay, components for offshore platforms will be constructed in future, in particular bridges, outriggers, decks, mantles and submarine infrastructure, but also complete offshore modules (platforms). Due to the very positive feedback from the international oil industry, a capacity increase is already being planned for the complex in Saldanha Bay.

Due to the accomplishments in South Africa, MAN Ferrostaal has decided to further intensify its engagement in the country.

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