News Releases

Drilling tool Manufacturing Company Begins Its Operation

PetroMaterials Corporation
September 19, 2005

An oilrig manufacturing company Qinhuangdao China Star Petroleum Equipment Manufacturing Co., Ltd., (Qinhuangdao, a city located in Hebei Province, China) − a joint venture by and between PetroMaterials Corporation and Beijing Dunhua Petroleum Technology Co., Ltd. − obtained the certificate of the American Petroleum Institute Standards (API Standards) on September 19, 2005. The company immediately began full-scale operations upon the receipt of the certificate.

For the time being, the company is expected to manufacture 5,000 drill collars annually. Once operations of the heat-treating furnace and friction welding facility that are now being introduced are initiated in February of 2006, the company will be able to produce 5,000 drill collars and 20,000 drill pipes yearly. Total investment is 400 million yen, and the investment ratio is 80% by our company and the rest 20% by Beijing Dunhua. A profit is expected even from the first year of operations.