TUBACEX signs joint venture with Awaji

TUBACEX has recently reached an agreement to create a joint venture with the Japanese company Awaji Materia to manufacture special stainless steel components at its factory in Thailand. This operation, which follows a statement of intent signed and announced last May, implies a capital increase of USD 3.3M subscribed by Tubacex Group through the Italian firm IBF, which accounts for 60% of the new company’s stake. As compensation for the remaining 40%, Awaji Materia will provide the assets for the stainless steel special fittings factory.

It is expected that the new company, Tubacex Awaji Thailand, will invoice EUR 20-25M in three years with the manufacture of stainless steel elbows, reductions, Ts and Caps. These are standard small diameter products that complement the “fittingsâ€? range that TUBACEX has been offering through TTA (Alava) and IBF (Italy), allowing for industrial synergies with its tube plant located in India.

For Jesús Esmorí­s, CEO of TUBACEX, “the crisis in the sector has hit the fitting sector particularly hard, but we have reacted with a plan for the specialization of our plants and a strategic acquisition in Thailand that will help us to reach our goals of diversification, better positioning in the value chain and proximity to the final user.â€?

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