Tubacex and Senaat join forces to grow in the Middle East

2/20/2019
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Photo: Nobu Group factory.

LLODIO, Spain -- Tubacex and Senaat, an industrial investment holding company owned by the Emirate of Abu Dhabi, have started a strategic partnership to support the development of energy projects in the Middle East. This alliance aims at growing in a key market by developing investment projects with a special focus on developing local manufacturing capabilities, with the ambition to become one of the largest manufacturers of premium tubular solutions in Middle East.

In the framework of this strategic alliance, Tubacex and Senaat have signed an agreement to acquire Nobu Group, a company specialized in repairing, maintaining and manufacturing services for high precision machining of tubular components supplying to a blue chip customer base which includes Baker Hughes, Schlumberger, Emerson and Halliburton among others. Tubacex will thus gain access to the leading oil services companies offering a wider portfolio of tubular solutions and repair and installation services.

With the acquisition of Nobu, Tubacexis moving forward in its strategy to become a global supplier of tubular solutions by significantly strengthening its product portfolio for customers in the upstream part of the energy sector. This activity is channeled through Tubacex Upstream Technologies (TXUT), a business unit that was created in 2016 with the aim of providing added value to the OCTG segment. In 2018 TXUT had revenues above 200 million euros. In addition, the acquisition of Nobu also comes to enhance Tubacex´s strategy of growing in key geographical markets, product diversification and offering an integral premium solution to end users. Furthermore, it reinforces Tubacex’s commitment in one of the regions with the largest resources of oil and gas, which is currently engaged in a growth plan.

This acquisition is the first step of the joint commitment between Tubacex and Senaat, one of the largest investment and industrial holding companies in the United Arab Emirates, to developing energy projects in the region, contributing to its economic development with local investments.

“Our status as a leader in the manufacture of CRA OCTG pipes, together with our good positioning in the Middle East, have led to a strategic alliance with Senaat to jointly develop local content, consolidating our foundations for growth over the coming years,” Jesús Esmorís, Tubacex Group CEO, said. In this regard, this alliance is currently analyzing the possibility of building production facilities to manufacture OCTG in Abu Dhabi, a product which will be used in the production and extraction of oil and gas, with a high demand in the Middle East and specifically in Abu Dhabi.

Acquisition of Nobu

The acquisition of Nobu at a valuation of $57.3 million (subject to potential final price adjustments) represents the first step towards establishing industrial bases in key regions, it increases the production capacity of the group, its international footprint by growing in key strategic markets and allows a wider integral tubular solution.

 

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