ReedHycalog invests another $22m and boosts hiring here By Narendra Aggarwal , The Straits Times, 9 Jan 2004

UNITED States-based ReedHycalog, maker of drills for the oil and gas industry, is investing a further $22 million in Singapore to make the next generation of specialised drills.

As a result, ReedHycalog plans to double its production and expand its workforce here by 56 per cent. The company currently has about 130 employees, mostly non-Singaporeans.

It is expanding its manufacturing plant in Tuas, and at a groundbreaking ceremony yesterday, Economic Development Board managing director Ko Kheng Hwa said that ReedHycalog would be developing and making the next generation roller-cone drill bits here.

These have tougher structures for better drilling.

'I understand that when this project becomes fully operational, Singapore will account for 80 per cent of Reed- Hycalog's global drill bit manufacturing capacity,' he said.

ReedHycalog is also setting up a 10-man product design and materials team in Singapore to work on the development of future generation products.

'We are delighted that ReedHycalog has decided to site these high-value manufacturing and development activities in Singapore,' said Mr Ko.

'It is a strong vote of confidence in Singapore's attractiveness as a manufacturing location and reinforces our position as a leading oil and gas equipment and services hub.'

ReedHycalog president John Deane said that when the company started out in Singapore in 1982, it was in low-cost production. Over the years, it had steadily moved to manufacturing high premium oilfield equipment for worldwide distribution.

The recent availability of natural gas in Singapore would enable the company to invest in the most advanced maching techniques for its products.

Mr Ko said that the oil and gas equipment industry here, which has about 60 companies making specialised equipment as well as production platforms for oil and gas production and production, was important for Singapore.

It has an output of $2 billion and employs more than 6,000 people.

Singapore's strong mechanical engineering capabilities had played a key role in the success of these companies here, said Mr Ko. The industry was poised for strong growth and output was projected to increase to $3 billion within five years.   JOB SEARCH Keyword   Newest Jobs in Town
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