Castolin Eutectic and TACO in Saudi joint venture
Castolin Eutectic and Tarek Nasser Al Akeel Company (TACO) have entered into a joint venture concerning drilling equipment for Saudi Arabia’s oil market
Castolin Eutectic has opened a subsidiary in Saudi Arabia through a new joint venture with its distributor, Tarek Nasser Al Akeel Company (TACO).
The announcement follows a previous KSA JV between the two firms, which focused on product sales, onsite welding repairs, vertical roller mill refurbishment, and the CDP wearplates business.
Phase two of the Saudi Arabian JV strategy will centre on growing the Castolin Eutectic OilTec subsidiary to cater to the drilling equipment-related servicing requirements of the Kingdom’s oil sector. The collaboration will provide wear protection and repairs for bottom hole assembly (BHA) tools, similar to the services offered by the Castolin Eutectic Services facility in Dubai, UAE.
A statement from Castolin Eutectic, commenting on the KSA market, said: “The Kingdom of Saudi Arabia offers good opportunities for growth. It is a high-income country with a 30-million population and a GDP per capita of $53,935 (SAR202,313), ranking 11th worldwide according to International Monetary Fund 2014 data.”
In 2015, the companies also intend to focus on Saudi Arabia’s cement, steel, and mining industries, and to grow their prepared parts and service capabilities within the field of CDP wearplates.