To strengthen industrial equipment, infrastructure business in the Middle East
TOKYO - Thursday, December 15th 2011 [ME NewsWire]
(BUSINESS WIRE)-- Hitachi Plant Technologies, Ltd. ("Hitachi Plant Technologies"), on December 13, has reached an agreement to acquire 70% of the stocks of the industrial equipment maintenance service company Saihati Weir Engineering Services Co., Ltd. ("Saihati"), convert the company into a subsidiary and change its name to "Hitachi Saihati Engineering Services Co., Ltd." (tentative) in February 2012.
With this acquisition, Hitachi Plant Technologies will leverage Saihati's resources to serve as a base for maintenance, manufacturing, and sales of industrial equipment, such as compressors, and for other infrastructure businesses in Saudi Arabia and elsewhere in the Middle East. The move is expected to strengthen the company's industrial equipment and infrastructure business in the region.
On June 21, 2011, Hitachi Plant Technologies became the first Japanese manufacturer to sign a comprehensive corporate procurement agreement (CPA) with the Saudi state-owned oil company, the Saudi Arabian Oil Company (Saudi Aramco) for the supply and servicing of compressors for the oil and gas industry. Hitachi Plant Technologies also intends to move forward with plans to expand its aftersales service base in Saudi Arabia to strengthen its compressor servicing and maintenance business with Saudi Aramco.
For over 30 years since its establishment in 1979, Saihati has developed, as its main business, the servicing and maintenance of motors, pumps, compressors, and other industrial equipment for various infrastructure fields in Saudi Arabia. Saihati has two service and maintenance shops in Dammam, Saudi Arabia close to Saudi Aramco headquarters, and it has a proven record of achievement in meeting Saudi Aramco needs.
Hitachi Plant Technologies decided to enter into this agreement to acquire Saihati to benefit from its customer base, human resources, and facilities to meet the growing demand in Saudi Arabia and other areas in the Middle East for industrial equipment and infrastructure.
Through this acquisition, Hitachi Plant Technologies will not only be able to expand its compressor service and maintenance business with Saudi Aramco, but it will also be able to utilize Saihati as a base for other Hitachi Plant Technologies products, including pumps, water treatment systems, industrial plant, and HVAC systems. Saihati is also expected to serve as a base for ventures by Hitachi Group companies in social innovation business fields.
Hitachi Plant Technologies is undertaking a wide range of initiatives to strengthen its ability to provide full support throughout the lifecycle of products and systems. The acquisition of Saihati is part of that strategy. Hitachi Plant Technologies will also continue to accelerate its community-based global development by strengthening its ties with customers and corporate partners as it expands its role in the outsourcing of maintenance services.
Overview of Saihati
Company Name
Saihati Weir Engineering Services Co. Ltd.
Location
Dammam, Saudi Arabia
Representative
President: Shadia Tawfiq Jarrah
Capital
8,000,000 SR (approximately 166 million yen)*1 (2011)
Shareholders
Ibrahim Ali Al-Saihati (54%), Shadia Tawfiq Jarrah (18%), Others (28%)
Business Areas
Repair, assembly and modification of motors, pumps, compressors, and other industrial equipment used for infrastructure; manufacture, assembly, inspection, etc. of machine parts
Sales
10.31 million SR (approximately 215 million yen)*1 (FY 2010)
Employees
76 (as of August 2011)
* 1SR = 20.87 yen.
About Hitachi Plant Technologies, Ltd.
Hitachi Plant Technologies, Ltd. ― Supporting Infrastructure with Environmental and Energy-Saving Technologies ― is a member of the Hitachi Group. Harnessing its engineering capabilities, monozukuri (manufacturing) skills and project expertise, Hitachi Plant Technologies offers total solutions for social and industrial infrastructures. The core businesses of our group mainly comprise Social Infrastructure Systems (pumps, compressors and water treatment systems), Industrial Systems (mechatronics, and chemical and pharmaceutical plants), Air Conditioning Systems (industrial and building facilities) and Energy Systems (nuclear and thermal power plants construction). For more information on Hitachi Plant Technologies, please visit the company's website at http://www.hitachi-pt.com.
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Contacts
Hitachi Plant Technologies, Ltd.
Yoshihisa Imajo, +81-29-832-6348
yoshihisa.imajo.qu@hitachi-pt.com
Hiroshi Morii, +81-3-5928-8100
hiroshi.morii.cd@hitachi-pt.com
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