By the OGJ Online Staff
HOUSTON, Aug. 14 -- Smith International Inc., Houston, and Sandvik AB of Sweden announced Tuesday a joint venture to design, manufacture, and market roller-cone and specialty drill bits for the mining and construction industry.
Smith and Sandvik will own equal interests in the venture, Sandvik Smith AB, headquartered in Koping, Sweden. The transaction, expected to close by the end of September, will create the world's leading industrial drill bit operation with a strong presence in all geographic regions, officials said.
"By combining the material science, manufacturing, engineering, and field service strengths of both organizations, the joint venture will be able to offer unparalleled customer support and product performance," said Roger Brown, president of Smith Bits.
Anders Ilstam, president of Sandvik Mining & Construction, said the joint venture is also part of his group's move to increase operations in the area of cemented-carbide tools.
Smith International supplies premium products and services to the oil and gas exploration and production industry, the petrochemical industry and other industrial markets through its four principal business units -- M-I, Smith Bits, Smith Services and Wilson.
Sandvik is a high-tech engineering group with advanced tools for metalworking, machinery, and rock excavation.
