THE MARKET faced with a changing tendency
The market for TUBACEX products and services has been suffering from a significant fall in recent years, leading to a permanent fall in volumes and a constant increase in price pressure, which has negatively affected the Group's results.
In spite of this unprecedented crisis in the sector, Tubacex has managed to lay the foundations of an advanced organization aimed at innovative solutions, obtaining historic contracts in premium products and earning the trust of end-users and engineering firms as the main sales channel. This positioning has enabled it to partially offset the poor market situation, preparing the organization for a change in trend that is expected to arrive in 2018.
Evidence of market recovery can be seen
Over the forthcoming months, high visibility is expected in the OCTG market with the participation of TUBACEX in new markets and large-scale projects. As for umbilical tubes, a gradual recovery is anticipated in line with the performance of this product segment in the final months of last year. There are reasons for medium-term optimism in the PowerGen sector thanks to TUBACEX's development of a new generation of “Advanced Ultra Super Critical” boilers, capable of withstanding up to 700 ºC at coal plants. It is expected that this new type of boilers will be welcomed in India. Finally, instrumentation tubes for the aeronautical sector are expected to be well received.
On the other hand, from the geographical point of view, Asia is considered to be a priority market for TUBACEX with an expected high rate of growth in terms of demand over the forthcoming years. Therefore, the Group is committed to strengthening its presence in this region through the incorporation of TUBACEX Awaji Thailand and the opening of new warehouses in United Arab Emirates, Iran and India.
Asia becomes a priority market
In short, it is expected that 2018 will be the year of a change in tendency, in which Tubacex will be able to demonstrate its ability to face the market challenges in terms of sustainability and competitiveness, trusting in innovation as a transforming lever and in professional teams as a driving force.