Flowserve and Saudi's Abahsain Form Joint Venture to Manufacture Valves

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Flowserve Corporation (NYSE:FLS) (Irving, Texas), a leading flow control products company that offers services to oil, power, gas and chemical industries worldwide, has formed a joint venture with S&A Abahsain Company Limited (Al Khobar, Saudi Arabia) to establish a valve-manufacturing facility in Saudi Arabia. S&A Abahsain's portfolio includes trading, manufacturing, transportation services, information systems, chemicals, industrial infrastructure and investments in real estate.

The joint venture, Flowserve/Abahsain Flow Control Company Limited, plans to begin manufacturing valves at a temporary facility in the coastal town of Al Khobar, Saudi Arabia. Meanwhile, a new manufacturing plant capable of delivering the entire range of valve and actuator products will be built in Dammam this year. The plant is likely to be commissioned by January 2010 and manufacture comprising ball valves, butterfly valves, plug valves, control valves, and pneumatic and electric actuators. The deal is expected to increase Flowserve's product offerings in the country, and the company stands to gain from Abahsain's huge domestic customer base.

The joint venture is an extension of a successful working relationship shared by the two firms through an existing joint venture named Flowserve/Abahsain, which was established in 1994. Flowserve/Abahsain produces mechanical seals and operates a warehouse to supply spare parts to its key customers from the power, water distribution and petrochemical industries such as Saudi Aramco (Dhahran, Saudi Arabia).

In cooperation with the Al Rushaid Group (Al Khobar, Saudi Arabia), Flowserve recently opened a quick-response center to provide efficient service to its customers in Saudi Arabia and the Gulf region by reducing the overall cycle time. The facility, located at the Al Rushaid Oil Field in Dhahran, is believed to be the largest pump-handling, testing and servicing facility in the Middle East. The plant is designed to manufacture pump parts and inspect and overhaul mechanical seals. This facility has helped Flowserve win a 10-year supplier deal with Saudi Aramco. According to the strategic agreement, Flowserve will supply products like valves, pumps and seals, and provide services to Saudi Aramco's existing and upcoming facilities in the region.

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.