US Lufkin Industries To Build $126M Plant In Romania

„The facility will manufacture products for both the company’s oilfield and power transmission divisions with an initial focus on oilfield products,” the company said in a statement.

The plant will be built on an 33-hectare site and will initially employ around 300 people.

Romania’s Government, through the Finance Ministry, has agreed to provide Lufkin with economic development incentives and financial assistance of EUR28 million towards the construction costs, or approximately 30% of the plant cost, the company also said.

„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, chief executive officer and president.

„The Romanian operation will serve as a strategic hub to serve the European market as well as acting as the focus for exports to Russia, Central Asia, North Africa, the Middle East and markets in East Asia.”

Moreover, 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 added.

Founded in 1902, Lufkin employs over 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.

Lufkin has plants in the U.S., Argentina and France.