SMITHS Group, the global technology business, today announces the acquisition of Fiberod (Fiber Composite Company Inc.) a Texas-based specialist in oil and gas lifting equipment. The acquisition is subject to regulatory approvals. Financial details of the purchase, from private owners, were not disclosed.
Fiberod complements the CDI oilfield products and services business bought by Smiths Group’s John Crane business less than a year ago. Both Fiberod and CDI extend the reliability of artificial lift systems which can pump oil from depths of more than 10,000 feet.
Fiberod is a world-leading manufacturer of fibre-glass sucker rods. These are a light-weight alternative to the traditional steel rods used for the artificial lift of oil and gas from the reservoir. In calendar year 2007, it reported sales of £12 million ($25 million).
Paul Cox, Group Managing Director of Smiths Specialty Engineering, said: “There are some 850,000 wells around the world and many of these require oil and gas reserves to be brought to the surface using artificial lift. Fiberod and CDI operate in a £700m per annum market and, since we acquired it, CDI has successfully used the John Crane worldwide network to penetrate new territories. Fiberod already supplies CDI with rods and this deal clears the way for even closer cooperation as we build a global upstream oilfield services business.”
Employing some 150 people, Fiberod manufactures at Big Spring, near Midland, Texas. Assembly is carried out in Big Spring and at nearby Ojinaga, Mexico. Fiberod is near completion of a new manufacturing facility in Midland, Texas.