Japanese engineering giant JGC is bolstering its international engineering, procurement and construction (EPC) business through a new operations center in Chennai, India.
“Currently, energy demand is increasing amid the recovery of the global economy in anticipation of a post-Covid-19 environment,” JGC said.
“Furthermore, from an energy security perspective triggered by Russia’s invasion of Ukraine, oil and gas producing countries should resume their large-scale capital investment plans, including gas liquefied natural”.
The contractor added that international markets for EPC power plants and low- and zero-carbon renewables are also expected to grow in the medium to long term.
“Given these circumstances, we have determined that securing a new subsidiary with access to significant engineering and technical resources is essential – not only to respond quickly to future expansion of the factory EPC market, but also to realize the key strategy of the BSP2025 Middle Term Management Plan, ‘EPC Operations Transformation’,” JGC said.
The Japanese company added that it has long recognized the “exceptional” engineering talent available in India and that this new company will allow the wider JGC Group to leverage these resources for upcoming projects around the world.
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All major engineering disciplines of JGC Corporation will be represented along with project management and IT functions to provide a fully functional subsidiary.
The new subsidiary will begin operations in November and aims to have around 250 engineers by March 2023. Going forward, the plan is to expand this number to 1000 engineers by 2040.
At the time of its establishment, the new subsidiary will mainly perform detailed engineering work for large-scale overseas EPC projects for JGC. In the future, the subsidiary will aim to become an EPC execution base for this.
Chennai was chosen as the location due to its excellent talent pool availability and high quality of educational institutions to support the future growth of the business.