REG - Hunting PLC - Formation of Joint Venture with Jindal SAW Limited

HuntingAnnouncement

23/12/2021 07:00

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RNS Number : 5461W  Hunting PLC  23 December 2021

 For Immediate Release  23 December 2021

 

 

 

 

 

 

Hunting PLC

 

("Hunting" or "the Company" or "the Group")

 

Formation of Joint Venture with Jindal SAW Limited

 

Hunting PLC (LSE : HTG), the international energy services group, today
announces the agreement to form a new 49%:51% joint venture with Jindal SAW
Limited ("Jindal"), the Indian conglomerate. The agreement formalises a closer
working partnership between the two businesses, following the formation of a
strategic alliance in 2019 when Hunting and Jindal began cooperating to
develop their presence in the rapid growth Oil Country Tubular Goods ("OCTG")
market in India.

 

Under the terms of the joint venture agreement, Hunting and Jindal will build
a dedicated premium connection threading facility in Nashik province, near to
Jindal's existing steel mill operations, with a proposed 130,000sqft
manufacturing footprint. The facility is targeted to be operational by the end
of 2022, with three threading lines being commissioned over time with an
annual capacity of 50,000 metric tonnes. The facility will be utilised for all
such manufacturing work once built and it is anticipated that the venture will
employ c.100 staff once fully operational.

 

The joint venture partners will contribute up to an initial c.$6.0 million in
cash, in proportion to the shareholdings noted above, with additional funding
to be contributed via loans and/or cash flows generated from the joint
venture.

 

The joint venture provides a mutual platform for significant growth in India,
with Hunting's premium connections being designated local content, as they
will be manufactured domestically.

 

As part of the commercial agreement with Jindal, Hunting will provide a
premium connection threading licence to the joint venture.

 

Jim Johnson, Chief Executive of Hunting, commented:

 

"The Indian OCTG market provides significant growth potential for Hunting. We
are delighted to have entered this joint venture agreement with Jindal, which
leverages our excellent working relationship which we have built since 2019."

 

 For further information please contact:

 Hunting PLC                              Tel: +44 (0) 20 7321 0123

 Jim Johnson, Chief Executive

 Bruce Ferguson, Finance Director

 Tarryn Riley, Investor Relations

 Buchanan                                 Tel: +44 (0) 20 7466 5000

 Ben Romney

 Jon Krinks

 

Notes to Editors:

 

About Hunting PLC

 

Hunting PLC is an international energy services provider to the world's
leading upstream oil and gas companies. Established in 1874, it is a premium
listed public company traded on the London Stock Exchange. The Company
maintains a corporate office in Houston and is headquartered in London. As
well as the United Kingdom, the Company has operations in Canada, China,
Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab
Emirates and the United States of America.

 

The Group reports in US dollars across four segments: Hunting Titan, North
America, Europe, Middle East and Africa ("EMEA") and Asia Pacific.

 

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.

 

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