WOOD has sold its industrial services business, which helps companies in the UK and Ireland maintain assets ranging from ships to processing plants, in a deal worth up to $118 million (£90m).

The Aberdeen-based engineering giant said the sale of the operation to plant integrity specialist Kaefer was an important step in its portfolio rationalisation strategy.

Chief financial officer David Kemp said as Wood looked to focus on specialist higher-margin work the industrial services arm had become non-core.

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The sale will also help Wood to reduce debt.

After making its name in the oil services business, Wood gained exposures to a wide range of other industries through the £2.2 billion acquisition of Amec Foster Wheeler in 2017.

Chief executive Robin Watson has looked to focus the enlarged group on sectors he sees as offering the best growth prospects.

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Kaefer will pay an initial $104m for the industrial services business and up to a further $14m depending ion its performance.

Wood agreed in August to sell its nuclear engineering business to Jacobs of America in a deal worth around £250m.