A subsea manufacturing campus is to be built in the north-east, creating 100 new jobs.
Baker Hughes, a GE company (BHGE), has committed £31 million to a manufacturing centre of excellence at its existing site in Montrose, backed by a £4.9m grant from Scottish Enterprise.
The 35-acre site will include test and assembly, research and development and workforce training facilities.
It will pioneer state-of-the-art manufacturing processes, such as virtual reality tools, industrial 3D printing, automation and sensor-equipped machines.
First Minister Nicola Sturgeon announced the funding at the Scottish Manufacturing Advisory Service annual conference in Cumbernauld yesterday.
Graham Gillies, vice-president of subsea production systems and services at BHGE, said: “This is very welcome news for the oil and gas industry, and for the UK manufacturing sector in particular.”