“We have made significant progress. The structures are almost completed, and so are the offices. But the equipment will be brought to the plant starting in March 2012, so we can start production in the third quarter of next year,” says Jay Glick, Lufkin’s president and chief executive officer.
The group last year posted $645.6 million in turnover, up 23.8% against the result reported in 2009.
In mid last year, Lufkin announced its decision to build a $126 million plant in Aricesti. The company obtained state aid of EUR28 million.
According to information supplied at the time, the plant will have 300 employees, and is set to generate sales of around $70 million to $80 million in a full year in business.
“We have three more people to hire in the management team, having hired around 20 or 25 people so far,” Glick says.
“The people we have managed to bring into our team could work everywhere around the world. Over the next 18 months we will finalize the recruitment process.”
He says Romania was the missing piece of the puzzle for the group’s production operations considering that the Eastern market was supplied with equipment produced over in Texas.
“What we used to manufacture in Texas for Eastern European markets, we have moved to Romania. This means $20 to $30 million in guaranteed sales. The big challenge will be to get the rest of the amount, up to the $80 million target we set,” Glick added.
The bulk of the Ploiesti-based production will be exported, with only 20% being assigned for the local market, for major oil companies, such as Petrom or Rompetrol.
The Lufkin plant will be built on a 33-hectare plot bought in industrial park Ploiesti West Park, developed by Belgian group Alinso and Romanian businessman Petrica Usurelu, owner of the Piritex group.