Hydril Company Announces $20 Million Capital Investment for Manufacturing Capacity Expansion

Apr 03, 2001, 01:00 ET from Hydril Company

    HOUSTON, April 3 /PRNewswire/ -- Hydril Company (Nasdaq:   HYDL) today
 announced that its Board of Directors has approved the expenditure of
 $20 million to expand the company's manufacturing capacity in the United
 States.  This brings capital expenditures and commitments to $31 million since
 its initial public offering.  The funds raised in Hydril's initial public
 offering in 2000 will be used to increase capacity in the Company's premium
 connection segment and to upgrade manufacturing equipment used in its pressure
 control segment.
 
     Premium Connection Segment
     During the first quarter of 2001, Hydril's premium connection segment
 completed the first phase of scheduled capacity additions at its plants in
 Nisku, Alberta and Houston, Texas.  Today's announcement of additional
 capacity is the second phase of planned plant expansions in North America and
 is scheduled to be on line in the fourth quarter of 2001.  The completed first
 phase and the planned second phase together will increase the company's
 premium connections capacity in North America by approximately 30%.  Hydril's
 Board of Directors will consider action on a third phase of expansion that
 would add an incremental 15% capacity to the North American operations later
 this year, after assessing market demand and plant utilization at that time.
 
     Pressure Control Segment
     The company's pressure control segment will add capacity and reduce costs
 by purchasing new state-of-the art machine tools to replace older equipment.
 The upgrades will ensure that customer demand will be satisfied on a timely
 basis.  Backlog of capital equipment orders in this segment has started to
 build, evidenced by Hydril's $37 million order for capital equipment from
 Santa Fe International announced last week.
     Chris Seaver, President and CEO of Hydril stated, "Our premium connection
 business in the United States and Canada continues to increase, and with this
 capacity addition, we will be able to continue servicing our customers with
 quality products and on-time deliveries.  The machine tool additions in the
 pressure control segment will increase throughput, reduce costs, and enable us
 to meet the requirements of our customers."
     Hydril Company, headquartered in Houston, Texas is engaged worldwide in
 engineering, manufacturing and marketing premium connection and pressure
 control products used for oil and gas drilling and production.
 
     Forward-Looking Statements
     This press release contains forward-looking statements.  These statements
 relate to future events or the company's future financial performance,
 including the company's business strategy, and involve known and unknown risks
 and uncertainties.  These risks, uncertainties and assumptions, many of which
 are more fully described in Hydril Company's Annual Report on Form 10-K for
 the year ended December 31, 2000 filed with the Securities and Exchange
 Commission, include the impact of oil and natural gas prices and worldwide
 economic conditions on drilling activity and the demand for and pricing of
 Hydril's products.  These factors may cause the company's or the industry's
 actual results, levels of activity, performance or achievements to be
 materially different from those expressed or implied by the forward-looking
 statements.
 
 

SOURCE Hydril Company
    HOUSTON, April 3 /PRNewswire/ -- Hydril Company (Nasdaq:   HYDL) today
 announced that its Board of Directors has approved the expenditure of
 $20 million to expand the company's manufacturing capacity in the United
 States.  This brings capital expenditures and commitments to $31 million since
 its initial public offering.  The funds raised in Hydril's initial public
 offering in 2000 will be used to increase capacity in the Company's premium
 connection segment and to upgrade manufacturing equipment used in its pressure
 control segment.
 
     Premium Connection Segment
     During the first quarter of 2001, Hydril's premium connection segment
 completed the first phase of scheduled capacity additions at its plants in
 Nisku, Alberta and Houston, Texas.  Today's announcement of additional
 capacity is the second phase of planned plant expansions in North America and
 is scheduled to be on line in the fourth quarter of 2001.  The completed first
 phase and the planned second phase together will increase the company's
 premium connections capacity in North America by approximately 30%.  Hydril's
 Board of Directors will consider action on a third phase of expansion that
 would add an incremental 15% capacity to the North American operations later
 this year, after assessing market demand and plant utilization at that time.
 
     Pressure Control Segment
     The company's pressure control segment will add capacity and reduce costs
 by purchasing new state-of-the art machine tools to replace older equipment.
 The upgrades will ensure that customer demand will be satisfied on a timely
 basis.  Backlog of capital equipment orders in this segment has started to
 build, evidenced by Hydril's $37 million order for capital equipment from
 Santa Fe International announced last week.
     Chris Seaver, President and CEO of Hydril stated, "Our premium connection
 business in the United States and Canada continues to increase, and with this
 capacity addition, we will be able to continue servicing our customers with
 quality products and on-time deliveries.  The machine tool additions in the
 pressure control segment will increase throughput, reduce costs, and enable us
 to meet the requirements of our customers."
     Hydril Company, headquartered in Houston, Texas is engaged worldwide in
 engineering, manufacturing and marketing premium connection and pressure
 control products used for oil and gas drilling and production.
 
     Forward-Looking Statements
     This press release contains forward-looking statements.  These statements
 relate to future events or the company's future financial performance,
 including the company's business strategy, and involve known and unknown risks
 and uncertainties.  These risks, uncertainties and assumptions, many of which
 are more fully described in Hydril Company's Annual Report on Form 10-K for
 the year ended December 31, 2000 filed with the Securities and Exchange
 Commission, include the impact of oil and natural gas prices and worldwide
 economic conditions on drilling activity and the demand for and pricing of
 Hydril's products.  These factors may cause the company's or the industry's
 actual results, levels of activity, performance or achievements to be
 materially different from those expressed or implied by the forward-looking
 statements.
 
 SOURCE  Hydril Company