NOV should purchase a Forging Company including machining capabilities. This would help reduce thier raw material and manufacturing costs and also help them lock in Raw Material for Rigs,
especially for Pressure Control Group.
It would also make it harder for thier competetion to aquire quality raw material.
Review acquisition of Elwood Group Inc. Good move.
Very strong company, high quality organization with Excellent Management, and a Great Fit.
why would buying a forging and machining company "make it harder for their competition to acquire quality raw material"?
There are a lot of forging and machining companies in the US. "Raw materials" would be steel, yes? Steel prices are down, inventories up, so availability of steel as input material from which to forge or machine parts is high. There is no metal shortage. What are you saying?