Wood Group interested in keeping Amec’s nuclear ops, sources claim

Nuclear news
Amec nuclear news

Oil services firm Wood Group is said to be considering keeping Amec Foster Wheeler’s nuclear operations unit.

It comes amid a planned £2.2billion mega-merger between the two companies.

Amec announced its intention to sell off its nuclear-orientated wing in March this year, before the tie up was confirmed.

It operates across both civilian and defence sectors and contributed revenue of £275 million and adjusted EBITDA of £17 million in 2016.

In a recent document to investors it was stated that bids had “been received” for the nuclear unit and the sale process was “ongoing”.

Now according to the Financial Times, Wood Group has expressed an interest to investors about hanging on to the department.

About 1,300 global energy service jobs are under threat from the proposed merger.

Documents published by Wood Group revealed an expected overall potential reduction of about 2% of roles across the combined business.

The likely size of the job cull is based on “current integration planning” and the two firms’ own workforce figures. It also includes “natural attrition”, where people who leave of their own accord are not replaced.

Wood Group has also offered to sell “the majority” of AFW’s North Sea oil and gas business in an attempt to pre-empt any competition concerns.

The companies expect the job cuts to deliver about 60% of their new cost savings target of at least £165million annually – up from a total of £150million announced in April – by the end of the third year after the merger.

Wood Group has been contacted for comment.

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