£12m contract award to see Cape grow its operations in Abu Dhabi

Cape, which has its UK operations in Wakefield, has been operating in Abu Dhabi since 1979 and this new award follows its successful completion of thermal insulation works on previous phases of the Ruwais project.

The contract is with Consolidated Contractors International Company and Linde Engineering, the main Engineering, Construction and Procurement contractors for the project.

The expansion will quadruple production capacity at Ruwais to over 4.5 million tonnes per year by 2013, making it the largest integrated polyolefins site in the world.

The site is owned by Borouge, a leading plastics company in the Middle East, India and Africa.

Martin May, chief executive of Cape, said: "We are delighted to receive this award and to continue our long-standing involvement with Borouge – the construction of one of the most impressive downstream facilities in the world."

Cape provides a range of industrial services including access systems, insulation, painting, coatings, blasting, industrial cleaning, training and assessment to both industrial plant operators and major international engineering and construction companies.

Last week the group announced it had set up a joint venture with Azerbaijan's state oil company to develop the country's oil and gas sector.

Cape said it has formed the partnership with the State Oil Company of Azerbaijan (Socar). The new company will be 49 per cent owned by Cape and 51 per cent by Socar.

Cape's chief executive Martin May said: "We are delighted that Socar has chosen to enter into this joint venture with Cape.

"Azerbaijan is a key country for the growth of Cape's CIS business owing to its large oil and gas deposits and the significant investment in the region."

He added that a partnership with the state oil company will provide Cape with high level access to major projects.

Cape has had a presence in Azerbaijan for over ten years, both directly and through its acquisition of PCH in 2007.

The two new contracts are a boost for Cape following the announcement a fortnight ago that takeover talks for the group had been terminated.

Cape is predicting a return to higher growth in 2011.

In May the group said it had made a solid start to the year with strong trading in the Far East offsetting a slowdown in the Middle East.