Chart Industries Inc. has announced that the Chart Cooler Service Company, part of its Chart Energy & Chemicals (Chart E&C) group, has entered into a joint venture to manufacture air cooled heat exchangers in the Middle East, in response to the high demand for oil and gas equipment in the region.
As a 34% partner, Chart Cooler Service joins forces with one of Saudi Arabia's premier business houses, S&A Abahsain Company (Abahsain) of Al-Khobar (a 51% partner) and US-based Specialised Industrial Equipment (SIE) of Houston, Texas (a 15% partner).
Abahsain is a top 50 company in Saudi Arabia and as well as providing financial strength, will bring established goodwill to the joint venture. The combination of the three companies' oil and gas, marketing and manufacturing expertise will create the new joint venture, Abahsain Specialised Industrial Co, or ASIC.
“Saudi Arabia is an ideal location for this joint venture because the region is one of the more significant users of air cooled heat exchangers,” stated Wayne Pyle, President of Chart Cooler Service.
“Abahsain has 60 years of in-region service to the petrochemical and energy industries. Their customer contacts coupled with Chart Cooler Service's experience providing high quality, low cost air cooler solutions, along with SIE's marketing expertise in the Middle East should prove to be a powerful combination.”
Michael Bright, President of Chart E&C, commented, “This joint venture supports our strategy of expanding internationally to better serve our growing customer base across the globe. This venture represents an excellent opportunity for Chart to enter this important market. Our combined strengths will be essential in this new key venture.”
Regional customers of the ASIC joint venture will benefit from faster delivery, lower shipping costs and reduced fees compared with ordering equipment from overseas, while ASIC expects to finalize construction and staffing of the facility in August 2008.