Leading oilfield service provider, Halliburton Co. (HAL - Analyst Report), has expanded its Senai, Malaysia-based Manufacturing and Technology Centre that was originally set up in Mar 2008.
With the 9,844 square meter extension, the facility now spreads 29,434 square meters in the 13-acre center and comprises a manufacturing plant, a bulk plant and an administration building. It also includes onsite technology and onsite high pressure testing facilities.
The expansion will cater to the manufacturing of a wide variety of products that include packers, tubing retrievable safety valves, services tools, subsurface flow, and swell and screens technology from Halliburton’s Completion Tools product line. Also, from the company’s Cementing product line, production will comprise float equipment, stage tools and cementing accessories. The expansion is expected to enhance Halliburton’s foothold in the areas of deep water, mature assets and unconventional resources development.
With the latest machinery and processes as well as a resourceful shop-floor plan, management expects the facility to achieve optimum production levels.
With roots in Eastern Hemisphere since 1926 and in Malaysia since 1974, management believes this expansion will enhance Halliburton’s yield and support its growing customer base, both in the Eastern Hemisphere and internationally.
The added capacity will also provide technological knowledge transfer and create new business opportunities and manufacturing jobs. By the end of 2013, the Malaysian Manufacturing and Technology Centre is expected to employ approximately 350 people.
Halliburton currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at other stocks in the oilfield services industry such as Seacor Holdings Inc. which currently holds a Zacks Rank #1 (Strong Buy) or Gulfmark Offshore Inc. (GLF - Snapshot Report) and Unit Corporation (UNT - Snapshot Report) that currently hold a Zacks Rank #2 (Buy).