Lifting gear and steel rope supplier Certex is committing millions of pounds to Montrose as it prepares for a tenfold increase in the size of its footprint in the Angus burgh.
New premises on the South Montrose quayside are expected to help the international firm’s Scottish arm grow revenues from £4 million this year to around £10m by 2016.
And the investment could lead to as many as 30 new jobs in the town as business ramps up.
Certex already employs around a dozen people at its sales and administration office in Aberdeen, but said it wanted to expand from its existing Montrose workshop after finding an attractive location with a low cost base.
Business manager David Young said finding a comparable site in packed Aberdeen would have been “almost impossible”.
“It is the place to be, and there are many people moving in,” he said.
“Montrose will not only increase our presence in Scotland, it will give us the edge when it comes to meeting the complex lifting needs of our oil and gas customers.”
Certex, a subsidiary of huge Swedish industrial conglomerate Axel Johnson International, will move from its present 6,000sq ft premises to a 36,000sq ft unit with a 25,000sq ft yard next month, and expects to spend a total of around £5m on a new 10-year lease, new plant machinery and stock.
A significant sum has already been invested in upgrading the newly-named Bamse House, with Certex making a contribution to Montrose Heritage Trust in recognition of their use of the famous sea dog’s name.
Employment will double to around 12 from the anticipated move-in date, and will grow further as business ramps up. Bosses also hope the operation can also support a number of apprentices.
Certex managing director Kevin Smith said the firm was responding to the requirements of its customers.
“We believe Montrose is the ideal location to expand our services and we are delighted to be part of the regeneration of the South Montrose area,” he said.
“Growth prospects for our business are very good and our investment will see us create up to 35 new jobs in Montrose over the next two years.”
Angus Council welcomed a “huge step forward” for the multi-million pound South Montrose regeneration project.
Development and enterprise convener Mairi Evans said Certex’s expansion was just the latest vote of confidence in the region following the authority’s regeneration efforts.
“Our vision was to attract investment, create new commercial opportunities and jobs to support and sustain the Montrose and wider Angus economy, and this is already coming to fruition,” she said.
The news follows the announcement of a £25m investment by GSK late last year and comes as Montrose Port Authority undertakes a £6m project to upgrade 170 metres of the quayside at the north end of the site.
The council, with support from Scottish Enterprise, has committed £3.4m to construct a new access road to improve transport links in the area.