TUBACEX AWAJI THAILAND
The TUBACEX reinforces its leadership in FITTINGS
TUBACEX Group continues to grow in strategic businesses
Within our strategy to become a global supplier of tubular solutions, TUBACEX has signed an agreement to set up a JV with the Japanese company Awaji Materia. This strategic acquisition will enable us to complete the fittings range offered until now through TTA (Spain) and IBF (Italy). In particular, TUBACEX Awaji Thailand, with a current workforce of 40 employees will produce stainless steel elbows reducers, tees and caps, with an expected turnover of 20-25 million in three years.
Joint Venture with Awaji, through a capital increase subscribed by IBF
This decision has been made against a market background deeply affected by the crisis and low oil prices which has had a greater impact on the fittings segment. Nevertheless, TUBACEX’s reaction has been to: restructure plants aiming to specialize to obtain higher productivity and profitability ratios; always facilitating the generation of sales and industrial synergies; as well as having the capacity to offer the required packages demanded by the market. In addition, a recovery is expected in the nuclear sector with the announcement of new plants to be built in India, the UK, Poland and Russia among other countries. This situation could have a positive impact on the group, and IBF is the sole supplier approved for the manufacture of key strategic parts.
A structure capable of generating synergies between its plants
With the acquisition of Awaji Materia Thailand and specialization of the other plants, TUBACEX is making progress towards achieving targets of diversification and growth in the value chain. Furthermore, making product availability at the distribution centers TUBACEX Service Solution (TSS) has worldwide, is now possible.
TUBACEX activity in the fitting segment: