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The American Independent Capital Group, Inc (AICG) and Sam Arnold have secured staged funding of US $65 million (442 million RMB) for Songyuan Daduo Oilfield Accessory Industry Co Ltd. The capital is intended to be used by the company for business expansion by constructing and operating factories in new geographic areas.
Songyuan Daduo Oilfield Accessory Industry Co Ltd. is a four year old company located in Songyuan City of Jilin Province in the northeast section of the People’s Republic of China. The largest oilfields in China surround Songyuan City.
AICG worked under an exclusive contract with Songyuan Daduo to assist in the translation of business documents, writing business plans, and preparing documents to support the Company’s investment position. The entire project, from contract signing to capital acquisition, took approximately four months.
The company has developed a proprietary and patent protected process for coating the inside of 10 meter long steel drill pipes. Daduo is the only company in the world possessing the technology to process pipes of this length. The procedure may be used to both manufacture new pipes and to refurbish old pipes, thereby increasing their useful lives. For example, Songyuan Daduo factories are located in the midst of the Jilin Oilfield, China’s sixth largest land-based oilfield. In the Jilin oilfield, the current useful life of a conventional steel pipe is 8 years; following refurbishing by Daduo the pipes are expected to be useful for up to 80 years, resulting in obvious savings on replacement costs.
The process used by Daduo is the result of extensive product development efforts, and is protected by patents and other intellectual property rights. The company has found that refurbishing old pipes is both more cost effective for their customers and more profitable for Songyuan Daduo Oilfield Accessory Industry Co Ltd. Thus, the company has focused their resources in this area.
Due to high demand and limited manufacturing facilities Songyuan Daduo will use the capital secured by AICG to expand their business by constructing, over the next five years, several new manufacturing facilities at sites near their customers to save on logistical costs.
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