The Glenalmond Group, which includes IODS Ltd, IODS Pipe Clad Ltd and Valve Components Ltd, has announced plans to create a new facility in Brazil.

The group’s new facility will enable the East Kilbride-based company to target the growing South American oil and gas market with its specialist pipe cladding and assembly and test operations.

This is the second international operation established by the group after it launched a valve components facility in Malaysia in 2008.

Initially, the facility, which is located in the city of Tatui in Sao Paulo state, will focus on the cladding of pipe up to 13.6m in length ranging from 4in to 18in internal diameter. In addition, the factory will deliver the assembly and testing of various flow control-related subsea products.

Once the facility has been operational for a few months the group aims to roll out the disciplines offered by all of its companies. The IODS companies are an international weld overlay cladding specialist and Valve Components Ltd has 25 years of precision engineering experience delivering project management, assembly and testing and manufacturing services.

Employing predominately a local workforce of 20-30 employees, a team from East Kilbride are overseeing the establishment of the 3,000m³ facility, which is expected to be complete before the summer.

A member of energy sector business development organisation, NOF Energy, The Glenalmond Group employs approx 280 in the UK.

Barbara Mincher, chief executive officer of the Glenalmond Group, said, "This investment by the group in a Brazilian facility confirms the commitment we have to serving our increasingly international customer base. We aim to bring the high standards of the Glenalmond Group to our first joint facility in Brazil and support our customers with locally produced equipment in the region.

"Brazil is on course to become a major centre for oil and gas operations in the coming years and we are keen to replicate our expertise and quality products in this emerging market."

Joanne Leng MBE, deputy chief executive at NOF Energy, said, "Brazil offers a large potential market for the UK supply chain as the country aims to produce the energy required to fuel its growth. From our experience of working closely with the Brazilian market, Britain’s engineering expertise and innovation is highly respected in South America with companies like IODS and valve components leading the way establishing in-country operations. However, it is important to state that UK companies must be prepared to invest in Brazil and the Glenalmond Group has clearly used the right strategy by setting up this new facility."