A Newton Aycliffe-based engineering company supplying the offshore windpower industry expects to see its revenues rise by 50% this year as it wins more work worldwide.
As reported in this morning’s Journal, Tekmar Energy is expecting to drive its turnover up to £18.5m in its current financial year, from £12.5m in 2011 as the offshore power sector grows.
The Aycliffe firm is a developer and manufacturer of protection systems for the undersea cables used to link wind turbines to the power network on land.
It has seen its revenues increase six-fold since 2009, with profits forecast to reach in the region of £5m this year and it expects to grow its 65-strong workforce.
Its ongoing growth and success led to it being named Durham and Wearside Company of the Year in the nebusiness Awards 2012 organised by the Journal and Evening Gazette in association with the North-East Chamber of Commerce.
Tekmar’s financial controller Eoghan Johnston said: “We plan to invest over £1m in our fixed asset base over the course of the year to enable us to increase our capacity and maintain our position as market leader.
“Alongside investment in our asset base we plan to increase the number of permanent staff employed by the company to ensure that we maintain the highest level of quality standards and production efficiency.
“We have expanded and offered new jobs, as well as giving job security to our existing workforce. We can confidently forecast our turnover because 50-60% of our work over the next few years has already been secured, including wind farms planned for 2016.”
Tekmar’s growth was fuelled by an injection of funds from London private equity firm Elysian Capital which took a majority stake in the firm last year. After spending £500,000 creating a new watertight seal last year, Tekmar plans another £800,000 investment this year.
Last year, Tekmar was awarded the contract to work on the Teesside offshore wind farm which will have the capacity to produce 62 megawatts of electricity and enough green energy to power up to 40,000 households.
This year, the company has a secured pipeline which includes working on three projects in Germany and Belgium.
Tekmar’s technology has seen it winning contracts across Europe, where the fast-growing wind power generation industry is strongest, and it is looking at expanding into China and the US.
The European renewable energy market is expected to grow over the next 20 years, with offshore wind dominating this expansion.
Installed European offshore wind capacity is forecast to reach 150GW by 2030 – a 50-fold increase on the current 2.9GW capacity.
Tekmar believes this represents an exciting opportunity for established British engineering firms to expand and become global leaders in the offshore wind energy market.
The North-East’s offshore wind-power generation industry has seen a series of boosts, including the announcement last week of a £615,000 Government grant to Northumberland firm Osbit power to develop a system to help people work more easily on offshore turbines.
The New and Renewable Energy Centre in Blyth this year announced plans for £300m research and development on giant turbines to be built in Northumberland and the centre will also host the operational hub of the Offshore Renewable Energy Catapult (Orec) in which the Government will invest £50m over the next five years.
■ Pictured above is Tekmar Subsea Operations Director, Gordon Conlon, left, and MD Gary Bland.