Shares digital

Mining plant construction specialist Bateman Engineering (BATE:AIM) has launched its second operational centre in India in less than two years. The new centre, called Bateman Global Services, is based in Pune, and follows the establishment of an operational office in Bangalore in June 2006.

The new centre strengthens the company’s efforts to focus on the cost-effective delivery of projects by taking advantage of the relatively low cost material and equipment and the availability of highly qualified and skilled technical personnel in low cost centres such as India and China.

The new centre will provide a centralised resource of core engineering capabilities, including the detailed design of equipment and components, required for plant projects, to all of the company’s business units. In addition, it will provide process engineering capabilities, along with centralised information and knowledge management services and global procurement and supply chain management. It will also feature a human resources sector which will concentrate on global recruitment.

Thanks to Bateman Global Services’ design strategy, the centre will be able to increase operations quickly by forming strategic partnerships with local companies which are experienced in the outsourcing of engineering services. Already, two partners in the area have been selected to help Bateman Global Services’ design capabilities. Bateman has also set up a representative office of its subsidiary Bateman Luxembourg in Beijing, China.

Bateman says that Bateman Global Services is in line with its fast-track globalisation initiative to take advantage of the rising demand for project and engineering services. Strong market conditions are expected to continue for the near future thanks to China’s emerging economy being the main driver of global growth, boosting demand for global commodities. The shares remained unchanged at 323p.

Shares says: The shares have taken a tumble over recent months but growth potential is promising.