Hitachi Plant Technologies has reached an agreement to acquire 70% of the stocks of the industrial equipment maintenance service company Saihati Weir Engineering Services Company.
A new subsidiary, tentatively named Hitachi Saihati Engineering Services Company, will be launched in February 2012 as a result.
With this acquisition, Hitachi Plant Technologies will leverage Saihati’s resources to serve as a base for maintenance, manufacturing and sales of industrial equipment, such as compressors, and for other infrastructure businesses in Saudi Arabia and elsewhere in the Middle East.
On June 21, Hitachi Plant Technologies became the first Japanese manufacturer to sign a comprehensive corporate procurement agreement (CPA) with Saudi Aramco for the supply and servicing of compressors for the oil and gas industry.
Hitachi Plant Technologies also intends to move forward with plans to expand its aftersales service base in Saudi Arabia to strengthen its compressor servicing and maintenance business with Saudi Aramco.
For over 30 years since its establishment in 1979, Saihati has developed, as its main business, the servicing and maintenance of motors, pumps, compressors and other industrial equipment for various infrastructure fields in Saudi Arabia.
Saihati has two service and maintenance shops in Dammam, Saudi Arabia close to Saudi Aramco headquarters, and it has a proven record of achievement in meeting Saudi Aramco needs.
Through this acquisition, Hitachi Plant Technologies will not only be able to expand its compressor service and maintenance business with Saudi Aramco, but it will also be able to utilise Saihati as a base for other Hitachi Plant Technologies products, including pumps, water treatment systems, industrial plant, and HVAC systems.
