AFGlobal to lease Dril-Quip Houston facilities

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HOUSTONDril-Quip has entered agreements with AFGlobal Corp. under which the latter will lease Dril-Quip’s forge facilities and equipment at its Houston manufacturing campus.

From Oct. 1, AFGlobal’s industrial forging division will assume all operational responsibility of the facilities and will continue to supply Dril-Quip with forgings pursuant to a supply arrangement. AFGlobal will also supply its other customers and markets with the capacity from these facilities.  

Dril-Quip expects the transaction to contribute $11-$13 million annually toward its cost savings target of $40-$50 million. 

09/11/2019

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