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Success Stories
EIC Survive 2024 EIC Survive&&Thrive Thrive 2024
JulyJuly 2024 2024
Story type #export (main category) #diversification
Norco Energy Group
Benefits
Looking overseas to make the most of its oil and gas expertise John Roy
Willie Duff
Director
General Manager
▸ UAE business has generated 8.5% of company’s revenue in 2023 and is expected to grow to 15% in 2025. ▸ Internally processes are clearer and more fluid.
Key findings How is Norco Energy Group thriving? After 30 years of serving various industries, Norco Energy Group took the decision to maximise its oil and gas expertise by exploring opportunities that lie further afield. The UAE, standing out as a natural first step ever since the company visited in 2017, has proven fruitful in the years since, not least because of its business with ADNOC. Today, the country is responsible for a significant proportion of overall revenue, this growth being driven by a new General Manager with two decades of local experience. The challenge - Any company doing business in the same market for 30 years will face challenges to retain a strong market share. Specialising in customised battery and Uninterruptible Power Supply (UPS) solutions across various industries, Norco Energy Group has built up a reputation for providing high-quality products and services. Its experienced professionals offer tailored solutions, including a comprehensive range of batteries, UPS systems, and related services, including installation, maintenance and repairs. However, in 2017 the company reached a crossroads. Whilst it could continue to grow within the UK, specifically strengthening its presence in England, this would require more of a generalisation of its services rather than specific oil and gas support – as such, Norco would face strong competition. The company’s leadership therefore decided to explore other countries and regions that have oil and gas industries where it could offer its unique service capability. The soluti on - After visiting in 2017, the UAE became the obvious target for international expansion. Indeed, it was evident there was a requirement for Norco Energy Group’s services and products, necessitating a 100% commitment to the region. This was swiftly achieved by placing a full-time employee in the country and, while initially making slow progress in terms of regional promotion, the company gradually gained traction and experience through a relationship with ADNOC. The first order from ADNOC was a big milestone, not least because other prospective clients wanted to know about Norco’s prior experience in the country before committing
to doing business. After successfully fulfilling this work and gauging the market, the company received a further, larger order for ADNOC Distribution in Q1 2020, marking its first major job in the country. This breakthrough prompted the hiring of another UAE employee. However, in the years since, Norco encountered a series of challenges which threatened to hinder its progress in the region. Momentum began to slow as the company was starting to not receive replies to tenders, while delays were encountered when bidding on large volumes. In addition, the company fell into the trap of operating with ADNOC blinkers, and therefore not considering any work outside of the traditional oil and gas remit, in large part due to a lack of contacts in these areas. Managing the operation from afar was also a problem, with mistakes starting to seep through the cracks due to time differences and a lack of oversight. In April 2023, the appointment of Willie Duff to the role of in-country General Manager changed everything. Bringing 20 years of experience with him, Duff entered the fray with a fresh set of eyes and immediately grasped where Norco should be selling its expertise in the UAE market. Two avenues proved to be successful almost straight away. First, the company decided to offer training courses on UPS and battery systems in a similar way it was doing for clients in the UK – such has been the popularity, clients are already looking to book follow up sessions. The second area Duff identified was shipyards. Here, the company has made instant progress, securing repeat business from some of the largest operators in the country, with four clients between them generating AED2m of work in the space of a year. From an internal perspective, various processes have also been ironed out. Payments are more fluid, contractual awareness has increased, and the existing workforce has been retained with a view to expansion as more contracts are secured. Indeed, momentum is now gathering once again. In 2022, the UAE business generated around 2% of company revenue, this growing to 8.5% in 2023 and on track for 15% in 2024.
For industry ▸ Speak to others and learn from their stories, particularly challenges faced and how they were overcome and also mistakes that set them back. ▸ Be prepared to change your strategy and rethink your plans.
Norco Energy Group at a glance: Key products and services: multimanufacturer equipment support. Main industries served: ▸ Oil and gas – 60% ▸ Hydrogen – 5% ▸ Conventional power – 5% ▸ Energy storage – 5% ▸ Onshore renewable energy – 5% ▸ Nuclear power – 2% ▸ Offshore renewable energy – 1% ▸ Others (energy): facilities management – 17% Headquarters: Aberdeen, UK Year established: 1992 Number of employees: 112 Revenue: £12m Revenue from exports: 4%