EDINBURGH-based products manufacturer Premier Hytemp is to build a second manufacturing facility in Singapore to serve its downhole tools, wellhead and subsea tree markets.

The company will invest US$20 million in the 6,244 square metre precision engineering facility, to be located next to the existing 7,246 square metre facility in Jurong which primarily serves the wellhead and subsea tree markets.

Construction of the facility is expected to start some time this year.

Premier Hytemp chief executive Campbell MacPherson said the investment would lift the company’s ability to serve clients in the downhole tools market.

“The expanded scope of the new facility and our ability to manage products from raw material through to fully tested, final machined and assembled consignments – supported by extensive in-house technical expertise developed over 30 years – means that we are strongly positioned to deepen our relationships with established customers and attract new business,” he said.

“Our control of all aspects of the product manufacturing process also provides our clients with additional assurance in terms of quality control and on time delivery.”

The company announced its plans for the Singapore expansion in March, alongside a boost to its manufacturing operations in Newbridge and Sheffield in the UK to help it meet market demand.

Premier Hytemp expected to increase its 200-strong worldwide workforce by up to 50% in the next three years, it said at the time.

The company provides low alloy, stainless steel and nickel alloy products, manufactures components for original equipment manufacturers and service companies for applications in wellheads and production equipment, well construction, valves and actuators, and downhole tools.

Its suite of services include sawing and proof machining, heat treatment, testing, final machining, cladding and assembly and is fully supported by its in-house technical team with expertise in metallurgy, forging, heat treatment, welding and project engineering.

The management buyout of Premier Hytemp in November 2012 was backed by Dunedin, the UK mid-market private equity specialist group.