NASHIK: Homegrown Jindal SAW on Monday inaugurated a $25-million facility set up in joint venture with US-based Hunting Energy Services in Maharashtra.
In 2019, pipe-maker Jindal Saw had partnered with Hunting to source its patented connections technology to manufacture finished seamless casing and tubing in India.
As part of the partnership, the joint venture (JV) company Jindal Hunting Energy Services Ltd (JHESL) has invested over $25 million to set up a Oil Country Tubular Goods (OCTG) threading plant in Nashik, said Neeraj Kumar, Group CEO-whole-time director, Jindal SAW.
JHESL plant is the only facility in India to manufacture and supply pipes and tubes with premium connections to OCTG market in oil and gas sector in India, he said, adding the annual capacity of the plant is 70,000 metric tonnes.
On the rationale behind the move, Kumar said the investment provides a huge business opportunity in the domestic market at present.
The domestic players operating in the oil & gas sector will be able to get domestically manufactured products at a competitive price, the company official added.
While Jindal SAW will hold a 51 per cent stake in the JV, Hunting Energy will own the remaining 49 per cent. “With this initiative the group will be able to participate in the AatmaNirbhar initiative of the government. The state of art facility will provide world class products to the players who were dependent on imports,” PR Jindal, chairman, Jindal SAW, said.
Jim Johnson, CEO, Hunting PLC said, “We look forward to introducing more advanced connection technology as we progress along. I am confident that this JV Manufacturing Hub will bring benefits to the local oil and gas (O &G) industry, and also play a part in India’s energy transition.”