US company Lufkin Industries, Inc. (Nasdaq: LUFK) will build a manufacturing facility near Ploiesti, with an investment of USD 126 million. This facility will manufacture products for both the company's oilfield and power transmission divisions with an initial focus on oilfield products. The factory will employ 300 people and will be completed in 2012, the company has announced. It will become a strategic hub to serve the European market and for exports to Russia, Central Asia, North Africa, the Middle East and markets in East Asia.
The Romanian Government has agreed to provide Lufkin with economic development incentives and financial assistance of EUR 28 million towards the construction costs, which is approximately 30 percent of the plant cost.
"The new operation in Romania is a critical step in our strategy to expand our geographic reach to better serve our global customers. This will enhance our competitive position in the growing markets of the Eastern hemisphere,” said Jay Glick, CEO and president of Lufkin.
“Romania provides Lufkin access to local sources of raw material and castings, a strategic location for favorable shipping routes and a technically-capable and highly-educated local workforce," he went on.
Founded in 1902 and based in Lufkin, Texas, Lufkin Industries, Inc. employs more than 2,800 people worldwide. The company sells and services oilfield pumping units, automation systems, gas and plunger lift systems, completion products, foundry castings and power transmission products throughout the world. In addition to its manufacturing plants in Lufkin, Texas, the Company operates an oilfield equipment manufacturing plant in Comodoro Rivadavia, Argentina, an automation systems manufacturing facility in Houston, Texas, a gas and plunger lift manufacturing facility in Houston, Texas, and a power transmission equipment manufacturing plant in Fougerolles, France. It also operates in the key oilfield and gas producing countries throughout the world with sales, aftermarket and service locations.