Kubota Expands Reaction Tube Sales in Middle East

Kubota, Japanese major cast metal maker, aims to increase the sales of reaction tube to about 24-25 billion yen per annum with the global top share until fiscal 2014 ending March 2015, mainly for oil and chemical plants in Middle East. The firm plans to spread global business of reaction tube by utilization of a new plant in Saudi Arabia. The firm will offensively expand the reaction tube business in Middle East, where the market share is almost taken by European makers, as well as North Africa and Europe.

Reaction tubes are heat-resistant cast metal tubes, used as clacking coil to bring out ethylene from ethane and naphtha and as re-former tube to bring out hydrogen from naphtha. The global market of reaction tube is about 60 billion yen. Summit and Clemens accounts for about 40% of the market share. Kubota is the second maker in the world.

Middle-Eastern countries are investing to ethylene plants. Kubota said the current market is around 7-8 billion yen in Middle East and is expected to grow up to the level as large as North America in 2013.

Kubota produces reaction tubes at 2 plants in Japan, Kubota Metal in Canada and the plant in China. Kubota’s new plant starts the operation in July 2010.