Castolin Eutectic expands in the Middle East: Saudi Arabia Joint Venture
Castolin Eutectic opened a new subsidiary in Saudi Arabia via a Joint Venture agreement with its long-term distributor, Tarek Nasser Al Akeel Company Ltd (TACO). The joint venture was formally signed during the Castolin European Sales Congress on 19 March 2015 in Frankfurt, Germany.
Founded in 1982, Tarek Nasser Al Akeel Company Ltd started as a family business, having operation and maintenance amongst core business activities. The previous Castolin Eutectic - TACO collaboration referred to product sales, on-site welding repairs, vertical roller mill refurbishment and CDP® wearplates business. Besides growing existing branches, plans for 2015 focus on the Cement, Steel and Mining Industries in Saudi Arabia, as well as expanding the CDP® wearplates prepared parts and services business.
Being a petroleum-based economy and amongst the largest oil producers worldwide, phase two of the new Saudi Arabia joint venture will centre on growing the Castolin Eutectic OilTec business and catering to local oil manufacturers’ demand for drilling equipment to be serviced within the country. The new Saudi Arabian cooperation aims to offer wear protection and repair of bottom hole assembly tools (BHA), similar to the Castolin Eutectic Services facility in Dubai.
The Kingdom of Saudi Arabia offers good opportunities for growth. It is a high-income country, with a 30 million population and a GDP per capita of $53,935, ranking 11th worldwide according to International Monetary Fund 2014 data. Controlling the globe's second largest hydrocarbon reserves, Saudi Arabia is the only Arab Country to be part of the G-20 major economies.