Coflexip-Stena's announcement about its manufacturing operations disappointing

28/1/99

Western Australia will continue to grow in significance as a service and supply centre for the oil and gas sector, despite yesterday's announcement that Coflexip-Stena will place its Fremantle manufacturing operations on a care and maintenance basis, according to Commerce and Trade Minister Hendy Cowan.

Mr Cowan said that while the announcement was disappointing, especially for about 50 employees affected, he had no doubt that Coflexip-Stena would continue as major WA-based participant in the oil and gas services sector.

He said that the company still saw WA as the premium location in Asia and had confirmed it would continue its regional administration and offshore contracting operations, which employ more than 160 people locally.

"The State Government's success in attracting Coflexip-Stena to relocate its Asian regional headquarters, create a new contracting division and develop a manufacturing facility in Fremantle in 1995 was a major turning point for WA," Mr Cowan said.

"Since then many other international companies have moved their regional operations to the State, and as a result numerous local businesses have found increased opportunities to participate in the industry, both in Australia and overseas.

"Large scale oil and gas resources development throughout the world has slowed and manufacturing opportunities for Coflexip-Stena in the region have been reduced.

"I am confident that future market growth will see the WA manufacturing operations resumed."

Media contact: Julie Cole (08) 9481 2044