Last checked at 23 Dec 2021 07:00
For Immediate Release | 23 December 2021 |
Hunting PLC
("Hunting" or "the Company" or "the Group")
Formation of Joint Venture with Jindal SAW Limited
Hunting PLC (LSE : HTG), the international energy services group, today announces the agreement to form a new 49%:51% joint venture with Jindal SAW Limited ("Jindal"), the Indian conglomerate. The agreement formalises a closer working partnership between the two businesses, following the formation of a strategic alliance in 2019 when Hunting and Jindal began cooperating to develop their presence in the rapid growth Oil Country Tubular Goods ("OCTG") market 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 to Jindal's existing steel mill operations, with a proposed 130,000sqft manufacturing footprint. The facility is targeted to be operational by the end of 2022, with three threading lines being commissioned over time with an annual capacity of 50,000 metric tonnes. The facility will be utilised for all such manufacturing work once built and it is anticipated that the venture will employ c.100 staff once fully operational.
The joint venture partners will contribute up to an initial c.$6.0 million in cash, in proportion to the shareholdings noted above, with additional funding to be contributed via loans and/or cash flows generated from the joint venture.
The joint venture provides a mutual platform for significant growth in India, with Hunting's premium connections being designated local content, as they will be manufactured domestically.
As part of the commercial agreement with Jindal, Hunting will provide a premium connection threading licence to the joint venture.
Jim Johnson, Chief Executive of Hunting, commented:
"The Indian OCTG market provides significant growth potential for Hunting. We are delighted to have entered this joint venture agreement with Jindal, which leverages our excellent working relationship which we have built since 2019."
For further information please contact:
Hunting PLC Jim Johnson, Chief Executive Bruce Ferguson, Finance Director Tarryn Riley, Investor Relations
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Tel: +44 (0) 20 7321 0123 |
Buchanan Ben Romney Jon Krinks | Tel: +44 (0) 20 7466 5000 |
Notes to Editors:
About Hunting PLC
Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a premium listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has operations in Canada, China, Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab Emirates and the United States of America.
The Group reports in US dollars across four segments: Hunting Titan, North America, Europe, Middle East and Africa ("EMEA") and Asia Pacific.
Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.