Jindal Saw, a leader in pipe manufacturing, has announced the formation of a new joint venture with Hunting Energy Services, a global leader in premium connection solutions, to set up a ‘state-of-the-art’ premium connection threading plant in India.
The Oil Country Tubular Goods (OCTG) threading plant at Nashik will be a 51%:49% partnership with Jindal Saw as the majority shareholder. The initial investment in this joint venture will be around $20-25 million and the potential annual market size for Premium OCTG in India is close to $200 million, said a statement.
This joint venture will target various parts of the world, the Middle East in particular.
The geographical location and proximity to the MENA region is an advantage compared to other mills and the joint venture will capitalise on the inroads that JSAW and Hunting have already made in the MENA region, said a statement.
In the joint venture, Jindal Saw will bring its location-specific capabilities and leverage its expertise in mobilising the workforce for the project. Hunting will provide its patented premium connection technology to thread premium connection on full range of seamless tubing and casing used mainly in deep drilling activities in the oil and gas sector.
This joint venture will become the first in line to have a state-of-the-art premium connection threading facility offering the widest range capabilities in OCTG solutions in India.
Under the terms of the joint venture agreement, Hunting and Jindal will build a dedicated premium connection threading facility in Nashik province near Jindal’s existing steel mill operations, with a proposed 130,000 sq ft manufacturing footprint. – TradeArabia News Service
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