The new joint venture company, which will be owned 60% by Weir and 40% by Highland and will be based in Dongying, Shandong Province, China, is expected to commence operations in the first half of 2011, subject to regulatory approvals.
Weir plans to invest $6.2m during its first two years of operation of the joint venture that will build upon the business strategy of Weir SPM, a manufacturer of products for the oil and gas market which has benefited from the development of shale gas production in North America.
Weir CEO Keith Cochrane said that the joint venture with SOHPE presents a great opportunity for Weir SPM to apply its expertise in well service pumps and flow control equipment to the accelerating Chinese unconventional gas market.
"Our partnership with SOHPE, with its extensive customer relationships and market knowledge, will be a key enabler for production from China’s shale gas reserves," Cochrane said.
