Hitachi Plant Technologies Acquires Saihati Weir of Saudi Arabia
Hitachi Plant Technologies, Ltd. ("Hitachi Plant Technologies"), on December 13, has reached an agreement to acquire 70% of the stocks of the industrial equipment maintenance service company Saihati Weir Engineering Services Co., Ltd. ("Saihati"), convert the company into a subsidiary and change its name to "Hitachi Saihati Engineering Services Co., Ltd." (tentative) in February 2012.
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. The move is expected to strengthen the company’s industrial equipment and infrastructure business in the region.
On June 21, 2011, Hitachi Plant Technologies became the first Japanese manufacturer to sign a comprehensive corporate procurement agreement (CPA) with the Saudi state-owned oil company, the Saudi Arabian Oil Company (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.
Hitachi Plant Technologies decided to enter into this agreement to acquire Saihati to benefit from its customer base, human resources, and facilities to meet the growing -
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 utilize Saihati as a base for other Hitachi Plant Technologies products, including pumps, water treatment systems, industrial plant, and HVAC systems. Saihati is also expected to serve as a base for ventures by Hitachi Group companies in social innovation business fields.
Hitachi Plant Technologies is undertaking a wide range of initiatives to strengthen its ability to provide full support throughout the lifecycle of products and systems. The acquisition of Saihati is part of that strategy. Hitachi Plant Technologies will also continue to accelerate its community-based global development by strengthening its ties with customers and corporate partners as it expands its role in the outsourcing of maintenance services.