John Crane, a division of Smiths Group, today announces around £25 million in new, long-term aftermarket contracts for the maintenance and support of its worldwide original equipment installations in the energy and process industries.
Awarded in the financial year ending July 2009, the dozen contracts ranged across the globe from France and Kuwait to the US and Angola, and included a variety of asset management solutions to major petroleum refining, upstream production and chemical plants.
Two thirds of John Crane’s revenue is generated by aftermarket services and the latest contracts, in addition to the renewal of existing orders, underline the success of the company’s recent restructuring into one global business with an expanded network of dedicated service centres.
Paul Cox, President, John Crane, said: “These Performance Plus contracts are highly attractive to our customers because they offer lower cost of ownership through greater long-term reliability, availability, safety, and inventory optimisation. The latest wins illustrate the opportunities our robust growth strategy has exploited despite exceptionally competitive conditions in the global oil and gas markets.”
Most contracts run for a five-year period. A large number of existing contracts are now in their second and third terms following successful renewals based on the benefits delivered.