HOUSTON, October 30 /PRNewswire/ --
NATCO Group Inc. (NYSE: NTG) announced today that its subsidiary had entered into a joint venture agreement to build, market and sell process equipment and systems and related services with Al-Rushaid Petroleum Investment Company, an affiliate of the Al-Rushaid Group Company, a Saudi Arabian enterprise with extensive business operations in the energy services sector.
NATCO Chairman and CEO John Clarke said, "This is a significant step for NATCO in our pursuit of technology and process equipment deployment to the largest oil producing market in the world. Our alignment with the Al-Rushaid Group establishes a relationship with a world renowned partner with significant capabilities in the Kingdom, including engineering, manufacturing, construction, drilling and market presence."
Sheikh Abdullah Al-Rushaid said, "We are delighted to partner with NATCO in the Kingdom. We selected NATCO as a partner due to its recognized leadership in process technology and equipment manufacturing. The Saudi Arabian market is large and complex and represents a significant opportunity to apply technology to various industry sectors."
The joint venture agreement includes the construction of a new, dedicated vessel manufacturing facility within Al Rushaid's new industrial complex in Jubail. The construction of the facility is expected to be completed by year-end 2008. The facility will have the capability to manufacture pressure vessels for the upstream, downstream and petrochemical markets. In addition, the venture will have the capability to deliver skidded packages incorporating NATCO production processing technologies.
Clarke added, "We believe that establishing local presence in the Kingdom with a substantial partner will accelerate our ability to penetrate this important world market. When the new facility is completed and the joint venture operation becomes fully staffed, we expect that sales to both new build and retrofit markets will be significant. We are encouraged by the support of the Saudi government, Saudi Aramco, SABIC and other clients of local manufacturing initiatives."
Clarke concluded by saying, "While we expect to focus first on debottlenecking opportunities and sales of crude oil desalting and dehydration equipment, in time, we would expect to deploy proprietary solutions for produced water treatment systems, seawater injection and ultimately CO2 membranes for enhanced oil recovery."
NATCO Group Inc. is a leading provider of wellhead process equipment, systems and services used in the production of oil and gas. NATCO has designed, manufactured and marketed production equipment and services for over 80 years. NATCO production equipment is used onshore and offshore in most major oil and gas producing regions of the world.
Statements made in this press release that are forward-looking in nature are intended to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. Forward looking statements in this press release include, but are not limited to, revenue, earnings and segment profit guidance, discussions regarding markets and demand for our products. These statements may differ materially from actual future events or results. Further, bookings and backlog are not necessarily indicative of future results. Readers are referred to documents filed by NATCO Group Inc. with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which identify significant risk factors that could cause actual results to differ from those contained in the forward-looking statements.
Web site: http://www.natcogroup.com
Andy Smith of NATCO Group Inc., +1-713-685-8075