PCC Investing in Downhole Drilling Market

PCC Investing in Downhole Drilling Market

All-cash acquisition Pushing for position in oil/gas market THI will make casing production quicker, more efficient

Precision Castparts Corp. has spent much of the past year adding to its aerospace market portfolio. Now, its attention has turned to the energy market. The Portland-based holding company is buying Texas Honing Inc., which performs tight-tolerance pipe processing with services like honing, boring, straightening, and turning at three plants in the Houston area.

The cost of the all-cash purchase has not been announced.

THI’s finished products are used in oil-and-gas drilling, well completion, and production applications, but also in other commercial markets. It has over 200 employees at its three operations.

"The acquisition of THI continues our steady push to establish a broader presence in the oil-and-gas market and to add capabilities that enable us to better serve that market," stated chairman and CEO Mark Donegan.

"As we become a larger supplier of nickel-alloy downhole casing to the industry, THI has capabilities that will make our casing manufacturing process quicker and more efficient. In addition, we will be able to supply finished pipe in future project bids, which will give us the opportunity to gain further share in an end market where we see significant growth going forward."

Precision Castparts manufactures forgings, investment castings, and fasteners for the aerospace, power, and general industrial markets. It also produces extruded seamless pipe, fittings, forgings, and clad products for power generation and oil-and-gas applications; commercial and military airframe aerostructures; and it supplies alloys and other materials to metalcasters and forgers.

Over recent months PCC has accumulated a series of companies active in the aircraft segment, including an investment caster, several machining operations, a specialty alloy parts forming company, a specialty testing operation, and an aerospace heat treater.

The new holding will be organized as part of the PCC Energy Group, which is reported as part of the corporation’s Forged Products business unit.

Last year, PCC acquired Rollmet, which makes a range of thin-wall pipe products; and KLAD Manufacturing, which produces weld-overlay materials for pipe and tube products and large vessels. Those operations are now part of the PCC Energy Group, too.

 

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