Odim to Establish Assembly and Testing Facility in Vung Tau

ODIM has resolved to establish a facility in Vung Tau, Vietnam for assembly and testing of automated handling solutions, as a follow up of the detailed analyses of the group's capacity requirements. The investment is estimated to be about NOK 85 million.

The investment decision is in line with ODIM's existing strategy of technological leadership with automated handling solutions in those parts of the value chain, which contribute most to value creation in the group. At the same time, this decision represents a good, long-term and flexible solution to ODIM's capacity challenges, on competitive terms. The investment decision will depend on the award of the necessary license from the Vietnamese authorities.

An assembly and testing facility in Vung Tau, Vietnam will supplement the group's existing plants and outsourcing network. It will thereby allow ODIM to get seriously to grips with its next growth phase from 2009. Vung Tau is the 12th largest city in Vietnam, and the country's center of offshore oil/gas-activities.

"This will secure our long-term growth opportunities in a region with competitive terms," says chief executive Jogeir Romestrand. "Together with our existing network, this solution will give us considerable flexibility in utilizing expertise, our product mix and making deliveries to the benefit of our customers."

ODIM has previously reported that more capacity is a necessary requirement for exploiting the substantial market potential offered by the high level of activity in existing segments. These include seismic, offshore supply and subsea as well as the aggressive commitment to the deepwater area.

"We've also reported that a solution to this question must be found during 2007." says Mr Romestrand. "I'm very pleased to see that we're sticking to this schedule." ODIM will provide more detailed information about the investment later. In parallel with the efforts being devoted to a major capacity increase, ODIM has been working actively for a long time to expand its outsourcing network in China and Singapore. That includes plans to boost capacity in Singapore this autumn.

The deepwater market is expanding rapidly, and ODIM expects that fewer large discoveries and petroleum exploration in ever-deeper water will mean strong growth for deepwater installation activity from 2008-09. Its unique ODIM CTCU technology for automated handling of fiber rope will give offshore operators considerably greater flexibility in their operations. That in turn will open completely new opportunities and yield substantial gains in relation to today's conventional solutions.

"We're seeing a steady increase in deepwater activity," says Mr Romestrand. "Growing demand for advanced installation and construction work is steadily boosting the potential for the ODIM CTCU. The potential volume we see in our mooring and deepwater installation business area represents an entirely new leg for us to stand on in the future."