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Company looks abroad as economy falters

By Du Juan (China Daily) Updated: 2014-04-08 07:24

Jereh Group, a Chinese private oil and gas equipment manufacturing and engineering service company, is taking big steps in its overseas expansion against the background of a slowing domestic economy.

"Based on our successful performance in the China market, Jereh is following a path of internationalization, professionalism and profitability in its going-global process," said Zhou Ying, chief executive officer of American Jereh International Corp.

Since the company's listing in the A-share market in 2010, it has been working on accelerating its overseas expansion.

Company looks abroad as economy falters

Company looks abroad as economy falters

So far, the company has sold its oilfield equipment in 61 countries and regions, among which businesses in North America, South America, the Middle East, Southeast Asia, Australia and Africa have been its major buyers.

"In order to be closer to our customers and know their needs better, we established subsidiaries and offices in Houston, Dubai, Moscow, Calgary and Jakarta," said Zhou.

According to the company, its annual revenue reached an average growth rate of more than 50 percent in the past eight years, increasing from 500 million yuan ($80 million) in 2008 to 6.5 billion yuan in 2013.

The company's market value also soared from 6 billion yuan in 2010 to more than 40 billion at present.

Early last year, the company received an order worth 1.12 billion yuan from Venezuela's state-owned oil company PDVSA Servicios Petroleros SA, which marked Jereh's first business expansion in South America.

The company develops oilfield equipment that can work under special conditions such as high temperatures or those with tough geological operating factors, especially in Asian oil and gas fields.

In May, Jereh's fracturing equipment was used in Turkmenistan's desert in temperatures of 40 degree Celsius. "Our market in Central Asia is growing steadily," said Zhou.

She added innovation is Jereh's key to success.

"Compared with international oil-service companies, we don't have that much experience. In this industry with its high thresholds for capital and technology, we have to be innovative as a private company," she said.

Company looks abroad as economy falters

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