Edinburgh headquartered Premier Hytemp Holdings (Premier Hytemp), a global market leader in the manufacture and supply of engineered metal solutions to the oil and gas industry, today announced that it has expanded its manufacturing capabilities by acquiring a 35,000-square foot state-of-the-art precision machining facility in Johor, Malaysia. This multi-million-dollar investment, supported by additional capital from Dunedin, will supplement the company’s existing presence in Singapore.
As a result, Premier Hytemp will expand its manufacturing capacity by c. 20% and enhance its capabilities in existing and new product lines, such as deep bore drilling and high-pressure hydro testing. It will also increase the business’ presence in Asia, boosting its competitiveness in today’s low-cost manufacturing market environment.
Premier Hytemp’s investment in its manufacturing capabilities comes at a time when the oil and gas sector as a whole is experiencing significant challenges and underlines the momentum behind the business. Premier Hytemp is backed by private equity firm Dunedin, which invested in 2012.
Mohit Sreen, CEO of Premier Hytemp, said: “We are delighted to be expanding our manufacturing facilities in the Far East. As a result, we will be able to expand our capacity and capabilities in both existing and new product lines, which in turn means we can offer an enhanced service to our customers. The investment will also allow us to improve our competitiveness in Asia’s low-cost manufacturing environment and puts us in the strongest possible position for the market upturn.”
Dougal Bennett, Partner at Dunedin, who sits on the board, said: “The investment that Premier Hytemp is making in expanding its manufacturing facilities in Asia is very notable as it bucks the market trend. There is no question that market conditions have been extremely challenging for the industry as a whole, resulting in a high attrition rate for oil and gas businesses. However, the team at Premier Hytemp has done a first-rate job of maintaining momentum and continuing to deliver a high-quality service to its customers. We fully support the team’s expansion plan, which demonstrates the confidence that we have in the business and the management team. With a well-diversified manufacturing capability, increased capacity and a very competitive position in the current low-cost manufacturing environment, Premier Hytemp is extremely well placed to take advantage of an oil and gas market upturn.”
Internationalisation is a key driver of growth for Dunedin-backed businesses. This announcement comes one week after Dunedin-backed Hawksford, the international corporate, private client, and funds business, announced its sixth portfolio acquisition of corporate services provider People & Projects Limited in Asia. Dunedin has to date funded 51 portfolio acquisitions from its second and third funds.
