Visions - Spring 2015 - (Page 14)

TUBULAR PRODUCTS GROUP HOWCO Acquires CTL Engineering Ltd. Longtime SCOA Tubular Supplier's Acquisition of Manufacturing Business Will Expand Company's Market Opportunities, Help Build Value Chain L ast November, HOWCO Group, a member company of Sumitomo Corporation Group and a longstanding supplier for SCOA Tubular Group, acquired CTL Engineering Ltd, a leading CNC machining procurement and assembly specialist with over 55 years of experience in delivering critical support to multi-sector industry organizations worldwide. "The acquisition of the manufacturing business of CTL Engineering was part of HOWCO's strategic development for building a stronger supply chain presence in the upstream oil and gas services sector," said Dave Davidson, HOWCO Chief Executive Office."We had a desire to expand our wellhead manufacturing business, a market sector that continues to show incremental growth and is moving more toward outsourcing specific manufacturing." Located in Bredbury near Manchester, England, the CTL manufacturing business is already becoming an important part of HOWCO's oilfield manufacturing business, providing an even wider range of products and services. HOWCO's strategic move to integrate the CTL manufacturing business came at a time when growth is forecasted for the industry. HOWCO currently serves a worldwide oilfield services sector with operations in the U.S., Scotland, England, Canada, Singapore, Malaysia, China, Norway and Dubai. "We are delighted to now be part of HOWCO Group, a large global organization, and one who can unlock the growth potential that our committed and skilled workforce bring," commented Ian Booth, Managing Director of CTL. "The acquisition by HOWCO means a bright future for CTL in a market that suits our skill sets and experience." Manchester Bredbury ENGLAND 14 v i s i o n s S p r i n g CTL will become an important part of HOWCO's oilfield manufacturing business, providing an even wider range of products and services. Presently, the CTL facility successfully supports this sector, but the existing infrastructure is scalable, and with enhanced market presence through HOWCO, there will be increased opportunity for producing complex manufactured products for the oil and gas market. Under the direction of HOWCO management, the Group will build on the strengths of the current team and apply its expertise to help expand and further develop CTL's technology strengths, thereby helping the business capitalize on its core skills and strong reputation. 2 0 1 5 Together, Sumitomo and HOWCO continue their expansion into the Oilfield Equipment (OFE) service sector, diversifying from the standard tubular business to become a service provider to the O&G market. This particular acquisition takes this partnership both one step further to reach strategic goals by entering a new equipment manufacturing market. HOWCO management had researched the UK manufacturing sector for a machining company that had the best reputation for technical ability, high quality product, on time delivery and safe environment operation -- specifically one that would add circa 80,000 machining hours to HOWCO's existing manufacturing capacity.When CTL became a candidate for acquisition, Davidson said that CTL also proved to be the best cultural fit between the two management teams. For HOWCO, this has created an opportunity to control the raw material supply into the manufacturing of machined parts, and the subsequent assembling and testing of finished equipment for the sub-sea sector. Already, the technical ability of CTL's workforce has exceeded HOWCO management's expectations, allowing HOWCO to accelerate their business plan to expand into new product lines; they not only produce machine parts for their customers, but now manufacture, assemble, test and supply finished pieces of equipment ready for customers to ship to the end user.

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Visions - Spring 2015