Overview

Fremak Industries is engaged in the sale and distribution of pipe and tubular products, primarily those used in the drilling and transportation of oil and natural gas.  The Company enjoys a niche commercial position in the steel industry as it deals with specialized products rather than commodity grade steel such as coils.  In addition, the Company has the advantage of having a limited number of dedicated, quality producers as suppliers, who support the company by maintaining level quantities of products, competitive pricing and support all aspects of the business.  This is especially true with Industrias Unicon, C. A. (Venezuela), with whom Fremak has exclusivity for the U. S. market.  

The products distributed by Fremak are by necessity manufactured to the high standards demanded by the oil and gas industry.  Because of these requirements, the Company only maintains relationships with producers of high quality goods.  These high standards necessitate a series of tests along the fabrication and delivery chain, which insure that the pipe is of sufficient or higher standard than that prescribed by the American Petroleum Institute (API).  It is important to note that the products produced by Industrias Unicon, C. A., have been approved by major oil producers for drilling on their projects.  In addition to the oilfield related products, the Company also markets standard pipe, electrical conduit and fence tubing produced by Unicon. 

Products currently handled by Fremak Industries are as follows:

Oil Country Tubular Goods (OCTG)
API Line Pipe
Standard Pipe A-53
Conduit and Fence Tubing

Tubular products distributed by Fremak Industries may be either welded or seamless.  Welded pipes are formed through the transformation of steel coils, both hot and cold rolled, into tube. 

Fremak has established sales channels with major distributors who have contracts with the major independent oil companies and smaller drilling companies.  This arrangement permits the Company to sell to larger, well-capitalized customers with strong cash flows. It also enables Fremak to establish a franchise with specific customers in specific markets, which results in a repetitive business on a quarterly basis.  This model enhances the cash flow of Fremak, as these customers are generally prompt with their payments.  In addition these accounts are credit insured under a comprehensive policy. 

 

 
Copyright © 2006 Fremak Industries, Inc.