Thursday 27th August 2015
The latest framework agreement with Scottish Water could potentially be worth £25 million over six years. In addition, there are a further six years of extension options to the contract.
The work will help PSI to achieve significant expansion by the end of this decade. PSI Managing director, Stuart Johnston wants to open a base in England, a move which could lead to the turnover and workforce doubling in five years.
The new Scottish Water contract will involve PSI in the design, manufacture, installation and commissioning of chemical dosing equipment to treat water and waste water installations throughout Scotland.
Mr Johnston said: "This long-term framework is fantastic news for PSI and the local economy. "Scottish Water is our biggest customer, we have worked for Scottish Water now for 15 years. This new contract is a massive endorsement of the quality of our work and level of support we offer to our clients. It will also give us a stable platform as we invest in the business and grow it further."
Turnover at PSI this calendar year is expected to be around £4.5 million and next year between £5.5 million and £6 million.
The company is a specialist in chemical dosing systems for the water industry. It also provides process solutions to other sectors including pharmaceutical and the semi-conductor sector. PSI was jointly founded by Mr Johnston in 1997 and the workforce has now risen to 34.
The majority of staff are local, and the company expects to take on another four in the immediate months ahead. Mr Johnston is proud that PSI is training so many of its own people - there are now six apprentices and one other trainee at the firm. "PSI operates in a very niche market, so it is difficult to go out there and hire someone with all the skills we need. Developing the skills of our new recruits is good for PSI and for the local community too. We are expecting to take on another four apprentices next year to help develop our strategy of building a sustainable and skilled workforce," he said. The company has been training its own apprentices since 2002.
PSI is part of Ross-Shire Engineering - a subsidiary of Scotland's Global Energy Group (GEG). Ross-Shire took a majority stake in the Fife firm at the start of this year. Mr Johnston said it was a good time to join GEG as the group has a track record of scaling companies like PSI to the next level. He would like PSI to operate throughout the UK within the next five years. He plans to open a base south of the border - potentially in the Midlands or the North of England. This expansion would help PSI increase annual turnover to between £8 million and £10 million, while the total workforce could reach 70 or 80 people. As well as plans to expand geographically, PSI has its eye on moving into other business sectors.
Mr Johnston said: "We see definite potential in applying our expertise to the oil and gas sector. Through being part of GEG, we anticipate interesting opportunities will come our way."
PSI Limited have a strong client base in this sector and support a wide range of clients from a variety of industries.
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A combination of sustained organic growth and an aggressive buy and build strategy has seen turnover grow rapidly year on year.
With vast experience working along side the UK's premier utility companies, our specialist water treatment capability allows us to provide a complete industrial service to our clients.