Japan’s engineering giant JGC is boosting its international engineering, procurement and construction (EPC) business via a new operations centre in Chennai, India.

“At present, energy demand is increasing against the backdrop of the recovery of the global economy in anticipation of a post-Covid-19 environment,” said JGC.

“In addition, from the viewpoint of energy security triggered by Russia's invasion of Ukraine, oil and gas producing countries are expected to resume large-scale capital investment plans, including liquefied natural gas.”

The contractor added that international plant EPC and renewable low and zero-carbon energy markets are also expected to expand over 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 for promptly responding to the future expansion of the plant EPC market, but also for realising the key strategy of the Medium-Term Management Plan BSP2025, ‘Transformation of EPC operations’,” said JGC.

The Japanese company added it has long recognised the “exceptional” engineering talent available within India and this new company will allow the wider JGC Group to leverage these resources on upcoming projects worldwide.

All of JGC Corporation's main engineering disciplines will be represented together with project management and IT functions to provide a fully functioning subsidiary.

The new subsidiary will commence operations in November and aims to have approximately 250 engineers by March 2023. Looking ahead, the plan is to expand this to 1000 engineers by 2040.

At the time of its establishment, the new subsidiary will mainly perform detailed engineering works for large-scale overseas EPC projects for JGC. In future, the subsidiary will aim to become an EPC execution base for such.

Chennai was chosen as the location due to its excellent talent pool availability and high quality of educational facilities to support the company’s future growth.