Varel Europe Expands Becoming Company's Fastest Growing Market Segment
Increase of drilling activity by National Oil Companies result in investments in PDC drill bit production and eastern hemisphere engineering resources
(Dallas, Texas - 4 March 2008) - Varel International's Varel Europe subsidiary, the base of the company's Eastern Hemisphere Operations, announces major expansions that continue to fuel Varel's global growth. Such expansions include increasing the Eastern Hemisphere (polycrystalline diamond compact) PDC drill bit manufacturing facility, located in Tarbes, France, and adding applications engineering personnel to the many of its regional offices.
"As our company has continued to grow, a key objective has been to reduce our cycle time of evaluating opportunities, designing products, manufacturing and delivering them to our customers," said Mike Reese, Vice President PDC Business Unit. "With the plant expansions and the additional engineering resources, we have met this objective. Our cycles times have reduced and our customers are reaping the benefit of having the right products for their specific applications."
Varel Invests to Increase Capacity
The Tarbes plant has played a crucial role in the company's ability to grow. Since it's inception in 1999, the facility has doubled its manpower and quadrupled its production. The facility employs design engineers and manufacturing personnel to produce matrix and steel-bodied PDC bits ranging in sizes from 1" (25 mm) to 24" (610 mm). Additionally, Tarbes is the company's global resource for the manufacturing of coring bits and natural diamond and TSP (thermally stable polycrystalline) bits. The facility is ISO 9001-2000 certified and has recently completed and passed three safety audits conducted by three major international oil companies.
Recently, Varel expanded the square meterage of the PDC drill bit production facility in Tarbes by 100%. This expansion makes it possible for the company to implement "lean manufacturing" flow lines which result in significant production efficiencies, including reducing the average number of days to deliver a PDC bit. To complement the safety commitment in Tarbes, a waste management system has been implemented and is on a course leading to zero waste output.
National Oil Companies Fuel Varel's Eastern Hemisphere Growth
Based in Pau, France, Varel Europe is Varel's fastest growing market segment and has played a significant role in the company being recognized as the "fastest growing drill bit company in the world." Presently, more than half of the company's total revenue comes from sales in the eastern hemisphere.
"During the last several years, Varel has experienced impressive growth," said Bernard Pontneau, Vice President, Eastern Hemisphere Operations. "Our growth has come from both the West and the East, but we are noticing that the East is growing faster. We attribute this to the drilling activity of the national oil companies operating in the eastern hemisphere."
Varel Europe has active sales representation in more than 30 countries in the Eastern hemisphere including Malaysia, the United Kingdom, Saudi Arabia and Congo-to name a few. Recently the company recruited and trained personnel to be applications engineers for customers operating in Kuala Lumpur, Abu Dhabi, Saudi Arabia, the United Kingdom, and West Africa. This investment of people will enhance Varel's ability to provide analysis, along with roller cone and PDC bit selection recommendations throughout the Eastern Hemisphere.
"Regional expertise and business relationships are important to customers," said Pontneau. "By expanding our number of regional engineering resources, we can provide better regional service to our customers."
Agreement Signed for PDC Assembly in Indonesia
Also, Varel has entered into an agreement to begin PDC drill bit assembly in Indonesia. This new facility will support customers operating throughout Indonesia. Bit assembly is slated to begin by Summer 2008.
"We are excited about this new initiative," said Reese. "Value added local content is strongly encouraged by the Indonesian marketplace. The Varel bit assembly in Indonesia will allow our company to increase our engagement with operators in this important market."
About Varel International
Founded in 1947, Varel International is the world's largest independent supplier and the fifth largest company operating in the global oil & gas drill bit market. Headquartered in Carrollton, Texas, Varel services oil & gas, mining, and industrial markets with its comprehensive suite of roller cone and fixed cutter drill bits. The company employs more than 1,000 people and has manufacturing facilities in Carrollton, Texas; Houston, Texas; Matamoros, Mexico and Tarbes, France, as well as sales offices throughout the world. Varel's proprietary design capabilities, efficient manufacturing, and global sales force uniquely positions the company to provide high-quality drill bits that deliver excellent performance and value to its customer base. For more information about Varel International, please visit http://www.varelintl.com/.
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