Backed by a £4.9 million grant from Scottish Enterprise, BHGE has committed £31m to the facility, based at its existing location in Montrose, which will create 100 new jobs. The 35-acre site will include test and assembly, research and development (R&D) and workforce training facilities.

Set to be among the most advanced facilities of its kind anywhere in the world, the centre will pioneer state-of-the-art manufacturing processes, such as virtual reality tools, industrial 3D printing, automation and sensor-equipped machines.

As part of the comprehensive expansion there will be extensions to existing warehouse, erection of a new workshop and test facilities and the development of an equipment yard with office accommodation. The facilities will see an expansion of the site and construction of additional manufacturing capacity that will build precision engineered equipment to service the global oil industry and in particular ensure environments are protected whilst oil is extracted.

First Minister Nicola Sturgeon announced the funding as she addressed the Scottish Manufacturing Advisory Service annual conference in Cumbernauld this morning.

She said: “Manufacturing, which employs more than 180,000 people in Scotland, is crucial to the success of our economy. Therefore I welcome the ambitious plans by BHGE to create a world-leading subsea centre of excellence in Montrose, supported by Scottish Government funding.

“This facility will bring new jobs and investment to Scotland. And as one of the most advanced centres of its type in the world, it will underline our international reputation for oil and gas innovation, developing the products and services the industry needs for the future.”

Graham Gillies, vice president-subsea production systems & services, BHGE, said: “This is very welcome news for the oil and gas industry, and for the UK manufacturing sector in particular. We are investing in our facilities globally and our collaborative approach with Scottish Enterprise is a strong example of how we are supporting a more sustainable future for this industry.

“Subsea technology is undoubtedly one of the UK’s greatest export success stories, with industry-leading technology and solutions being designed and manufactured here, and installed across basins worldwide.”

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Paul Lewis, managing director, Scottish Enterprise, added: “Scotland’s oil and gas industry, and in particular the subsea sector, is in the vanguard of global industrial development in this field and BHGE is at the forefront.

“We are pleased to be able to support this exciting project, which is testament to BHGE’s vision and ambition and the company’s skilled and talented workforce here in Scotland.”

Angus Council warmly welcomed the £31m investment as a vote of confidence for the region.

Council leader, Cllr Bob Myles, said: “This is fantastic news for Montrose and for Angus. We have worked hard with Baker Hughes and our partners in Scottish Enterprise to develop a very positive relationship and partnership though this process. Today’s announcement is a vote of confidence in Angus, our people’s skills and their ability to play its part in the global economy.”