Westinghouse buying Italian manufacturer Mangiarotti
Westinghouse Electric Co. said Wednesday it will acquire an Italian manufacturer of components for nuclear plants and oil and gas drilling.
The purchase of Mangiarotti S.p.A. secures one of the Cranberry-based company's key suppliers while giving it a chance to expand in the oil and gas market, Westinghouse said.
That expansion will involve manufacturing large equipment for the oil and gas industry, not exploration or drilling, spokeswoman Sheila Holt said.
“Our continued successful manufacturing expansion like Mangiarotti allows us to be a broader global provider in all energy fields,” Westinghouse CEO Danny Roderick said in a written statement. The company did not disclose financial terms of the acquisition, which it expects to complete next month.
Westinghouse focuses on fueling, building and maintaining nuclear power plants and has pushed to diversify holdings internationally. Eight of its new AP1000 reactors are under construction around the world.
It joins other companies looking to control more of the supply chain in the burgeoning oil and gas sector, said Kent Moors, executive chair of the global energy symposium at the World Affairs Council of Pittsburgh.
“We're seeing oilfield service companies like Halliburton acquiring manufacturers and suppliers,” Moors said. Companies that control “linchpin assets” such as the equipment Mangiarotti makes can influence profits in the energy sector, he said.
Officials at Mangiarotti could not be reached. The company produces large pressure vessels and heat exchangers at plants in Italy and has operated for about 80 years. Westinghouse said it will continue operations at the firm's Monfalcone and Pannellia facilities.
“There is a good opportunity there to provide important components to the industry, especially to Westinghouse and other third parties if there is demand,” Holt said. She noted Mangiarotti has an existing clientele for its products, although the company has struggled during a downturn in reactor building and tough economic conditions in Italy.
Accounts in Italian news media last month indicated tensions rising between Mangiarotti and some of its 450 workers over the future of their jobs if a deal with Westinghouse occurs.
Holt said she could not comment on that. Westinghouse will assess how many Mangiarotti employees it retains once it completes the purchase.
Moors said the Italian company could give Westinghouse valuable assets in the oil and gas supply chain, but it must incorporate logistics in getting the products to market.
“This requires a very carefully orchestrated management process. It goes beyond simply acquiring production facilities,” he said.
David Conti is a staff writer for Trib Total Media. He can be reached at 412-388-5802 or dconti@tribweb.com.
