Senaat, Spanish group in deal to set up tubular products JV
CONSTRUCTION NEWS
Senaat, one of the largest industrial investment holding companies in the UAE, said it has agreed the terms of a joint venture with Tubacex, a global leader in the manufacture of stainless steel and high-alloyed tubular products (tubes and accessories).
Senaat pointed out that this new partnership with Tubacex was further being cemented with the signing of an agreement to jointly acquire Nobu Group, a Dubai-based tubular manufacturer and provider of tube repair services.
With three locations in global oil and gas industry hubs – UAE, Saudi Arabia and Norway – Nobu is a specialised provider of precision manufacturing and repair services catering to premium tubular solutions needs.
It also provides repair and manufacturing services for high precision machining tubular components supplying to a blue chip customer base which includes Baker Hughes, Schlumberger, Emerson and Halliburton amongst others. It has a skilled workforce of over 200 people.
On the deal, Senaat CEO Engineer Jamal Salem Al Dhaheri said: "Our new partnership with Tubacex is consistent with the company’s strategy of seeking to partner with global organisations to grow the UAE’s manufacturing base."
"As the country’s leading industrial holding company, we have a big responsibility to promote our chosen knowledge-based industrial sectors in line with Abu Dhabi Economic Vision 2030. Our new partnership also fits closely with our existing focus on the oil and gas industry and will add further impetus to our efforts to drive shareholder value, as can already be demonstrated by the acquisition of Nobu," he stated.
Oil & gas services is a key business vertical for Senaat, which is invested in the sector through NPCC, a leading EPC services provider to the upstream Oil & Gas companies and more recently through Al Gharbia, a line pipe manufacturing company developed in partnership with Japanese partners JFE and MISI.
Senaat also provides specialty cables through Ducab.
Within the oil & gas sector, Oil Country Tubular Goods (OCTG) is a particular focus area for Senaat, as it is a key component of the oil & gas industry.
Certain components have longer lead times, which can sometimes significantly affect the timings of EPC programs. For example, OCTG CRA seamless pipe has longer lead time compared to the supply of drill heads.
Al Dhaheri said: "We are keen to expand our oil & gas product portfolio to take advantage of the massive sector development programs recently outlined by ADNOC and several other NOCs in the region."
"These programs offer significant opportunities to UAE manufacturers, especially in OCTG, where the ability for oil companies to have ready and reliable access to such products is so key to the programs’ successful implementation," he added.-TradeArabia News Service
