Jindal SAW, a steel pipe manufacturer, announced on Friday that it plans to establish a precision machine shop in a joint venture (JV) with Hunter Energy Services, based in the United States. Jindal SAW stated in a regulatory filing that it will possess a 51 percent stake in the proposed JV, while Hunter Energy Services Pte Ltd would own a 49 percent stake. The company’s board of directors has approved a proposal in this regard, according to the statement.
Hunting and Jindal SAW will build a dedicated premium connection threading facility in Nashik by the end of 2022 over an area of 1,30,000 sqft with an annual capacity of 50,000 metric tonnes. The facility will have three threading lines over time with an annual capacity of 50,000 metric tonnes. It is anticipated that the venture will employ approximately 100 staff members once fully operational and will achieve close to 70% incapacity in the second year of its operation.
”The company is proposing to enter into a JV agreement with Hunter Energy Services Pte Ltd (Hunting) to incorporate a JV company to set up a world-class state-of-the-art precision machine shop to thread premium connections in India for products i.e; oil country tubular goods and accessories for markets across globe,” the filing said. However, the company did not disclose the initial investment cost that would be utilised to set up the unit after the formation of the JV. Jindal SAW is a manufacturer and supplier of steel pipe products, fittings and accessories with manufacturing facilities in India, the US, Europe and the UAE.
Jindal SAW and Hunting Energy expects the potential annual market size for premium oil country tubular goods in India to be close to $ 200 million. In this JV, Jindal SAW Ltd will bring its location-specific capabilities and leverage its expertise in mobilizing the workforce for the project. Hunting will provide its patented premium connection technology to thread premium connection on the full range of seamless tubing and casing used mainly in deep drilling activities in the oil and gas sector, the companies said in a press release.
News Summary:
- Hunting, US-based Jindal SAW to invest $25 million in Nashik to establish a precision machine shop
- Check all news and articles from the latest Business news updates.
