Coiled tubing manufacturer plants roots in Houston area - Houston Business Journal:

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Global Tubing LLC -- whosed two competitors are also located in the Houstomnarea -- has received a $750,000p financial incentive package from the Dayton Community Developmentr Corp. for the plant. The incentivee will be paid out over five yearsz as the company meets specific revenu e andemployment goals. The one-year-old company has purchased 60 acreds on the west side ofDaytoj -- 40 miles northeas t of Houston -- for the plant, which is scheduled for completionb in September. Full production is expecterd byJanuary 2009. The manufacturing facility is expected to employ 150 people by its fifthb yearin operation, says Earl Joy, executiv director of the Dayton CDC.
Global Tubing's founder, Jon Dubois, was a co-founder of one of the firm's two competitors -- Quality Tubing, whicgh is now a division of Houston-based Nationalk Oilwell Varco Inc. And Globalo Tubing's vice president of sales, Carl Benge, previouslt worked for the other coiled tubing TenarisCoiled Tubes, formerly Precision Coiled tubing is used by oilfiel service companies to perform services in production wellw and to drill new wells.
And, as oil productionj has soared inrecent years, so has the demancd for coiled tubing, creating an opportunity for new Alex Crabtree, a board member of the Interventioh and Coiled Tubing Association, based in estimates that the worldwide coiled tubing industry stands at $2.5 billion. Crabtree says the longesg stretch of coiledtubing -- which is continuous and seamless -- made to date is 36,00o feet and ranges in diametere from one-and-one-fourth to three-and-one-half inches. Bengs says the coiled tubing industry has been growinvg at a rate of 10 percengt to 15 percent a with applications growing at20 percent.
Currentlh there are 1,539 coiled tubing unitws -- the equipment used to conveuy the tubing in and out ofwells -- worldwide. "Thre two manufacturers in Houston have not been able to keep up with Benge says. "Coiled tubinvg is a very unique product. So that is the drive behind the development ofGlobao Tubing." Benge says the companyy is in the process of visiting with potential customersw and "solidifying relationships." Global Tubing expecta to sell its products to customeres in the Middle East, Europe and South America as well as the U.S.
and One of those customer targetsis , a Houston-based oilfieldx services company where ICOTA's Crabtre works as technical manager for coiled tubing. "We will be a potential customer," he says of Global Tubing. "We buy from both existingh suppliers now." The reason that companies such as BJ Serviceds might consider Global Tubing as a providetr is because additional competition in the market couldbe "as good thing for underlying Crabtree says. "But the overriding factort for us is the reliability of the he says. "We will examine Global's product to see if it does bring enhancedperformance value.
" To give it an edge over existin competitors, Global intends to use a new manufacturing process that the compan y says will deliver a better, more uniform "We are taking advantagr of the latest technologu in tube-making," Benge says. "Therw has been a substantial amounty of new technology in the manufacturing and we are looking at severa ofthose technologies."