Overview

Simplify Your Supply Chain

At MRC Global, our role in supporting customers reaches beyond delivering high quality products and services safely and efficiently. As your supplier, it is also our responsibility to help you navigate the complex, global supply chain you rely upon to provide energy to the world. MRC Global is steadfast in our dedication to this commitment, and we are taking significant steps to ensure that we far exceed your expectations with exciting plans for growth in some of the most active regions in the world.

As you will read in the following pages, the forecast for energy related business continues to be optimistic. Though somewhat tempered by the recent decline in oil prices, it still appears that moving into 2015 your business is going to remain active, and your needs will continue to grow. Over the last couple of years, in addition to exemplary customer service, our focus has been and will continue to be the expansion of our global infrastructure to meet the increasing needs of our customers.

Our customers are local, regional, national and global, and their requirements are varied. We have relationships with customers who operate from single sites, and those with operations that expand globally, across many locations. Whatever the need may be, MRC Global works to ensure material is received on time, every time. Part of this commitment rests in our ability to bring value through supply chain optimization when we leverage our systems, processes and resources to drive supply chain efficiencies, continuity of supply and purchasing capabilities. Additionally, our targeted growth efforts to supply pipe, valves and fittings (PVF) on an expanded, global scale are providing even more reason for you to turn to MRC Global to help simplify your supply chain.

Since the beginning of 2013, in North America alone, we have added more than 215,000 ft2 (20,000 m2) of new warehouse and office space to support the expanding activity in the US shales and the Canadian oil sands. MRC Global recently completed a significant expansion of our Regional Distribution Center (RDC) in Nisku, AB, gaining approximately 67,000 ft2 (6,224 m2). With this addition, our Nisku RDC now offers 140,000 ft2 (13,006 m2) of warehouse and office space, 21 acres of pipeyard, a new Valve Automation Center (VAC) and more than $40 million in PVF inventory. To further our commitment to the shale activity in the southwest, we opened a new RDC in Tulsa, OK, which houses more than $20 million in inventory within 85,000 ft2 (7,897 m2) of office and warehouse space, 2 pipeyard acres and a full service VAC. MRC Global is also in the process of expanding our existing warehouse in Odessa, TX to a 100,000 ft2 (9,290 m2) RDC with a fully capable VAC, which together will service upstream production and midstream pipeline markets. We anticipate this enhanced facility to be up and running by the end of Q1 2015. To further support the upstream shale growth and resulting pipeline expansions, MRC Global has added an additional 64,000 ft2 (5,946 m2) in San Antonio, TX specifically for high yield fittings and flanges, for a combined warehouse space of 115,300 ft2 (10,712 m2). Our upcoming plans include 80,000 ft2 (7,432 m2) of additional warehouse space in Houston, TX to support increased project activity in the Gulf Coast.

In the Middle East, MRC Global’s plans to open a fully operational RDC in Jebel Ali, Dubai, should be realized in Q4 2014. This new RDC will house $10 million of inventory throughout 30,000 ft2 (3,251 m2) of warehouse space and 2.5 pipeyard acres, and will support our newly established regional sales office in Qatar. This latest RDC will also source inventory through our strategic supply relationship in Iraq with North America Western Asia Holdings (NAWAH). Further support for the Middle East should come as we open additional planned inventory locations in the region.

One of the oldest oil-producing areas in the world, the Caspian Sea region, is quickly becoming an important producer of natural gas with its significant oil and gas reserves. In order to expand with this increase in activity, MRC Global’s growing business in Atyrau, Kazakhstan is developing plans for an expanded warehouse facility delivering a full range of PVF products.

In Asia Pacific, MRC Global has increased our inventory offering in Thailand by more than $8 million in anticipation of plans to expand our facilities and operations in this essential energy producing region. Our recent acquisition of MSD Engineering in Singapore has increased our inventory of valve and automation products by $6 million, and with an additional 40,000 ft2 (3,716 m2) of warehouse and office space this allows us to further support our customers in the Southeast Asia region. By the end of 2014, MRC Global will establish a sales office in Indonesia to assist with the inventory needs of a number of our customers in this country.

In Australia, MRC Global’s footprint is already in excess of 1,000,000 ft2 (92,903 m2), with over $90 million of inventory across 17 sites. Our main service locations are positioned in Perth, Brisbane, Auckland and Christchurch. In Q3 2014 we added a new VAC to our existing facility in Perth to complement our VAC in Melbourne, and have plans to open another at our Brisbane location during 2015.

MRC Global’s customers in Europe gained a significant boost with our acquisitions of Stream AS in Norway, Flangefitt in the United Kingdom and, most recently, HypTeck in Norway. These locations add nearly 250,000 ft2 (23,226 m2) of warehouse and shop space to our existing infrastructure in this area of the world and greatly increase our international service offerings for offshore, flow control, instrumentation, valves and pipe, fitting and flange (PFF) products. In addition to these acquisitions, MRC Global is further expanding our infrastructure with a modern, 100,000 ft2 (9,290 m2) RDC in Rotterdam, NL, which will also include a state-of-the-art VAC.

MRC Global is committed to helping our customers plan for future growth by investing in our global infrastructure and improving our sourcing strategy through acquisitions and organic growth. The information provided in the following pages is a joint effort of our key manufacturers and industry leadership that we hope proves to be helpful as we close out 2014 and move into what is expected to be an active year in 2015 in the energy and industrial markets.

As always, MRC Global appreciates the collaborative relationships we share with our customers and we thank you for your continued business. We are grateful for the opportunity to play a part in the global supply chain, and to work together with the greatest companies in the world to make energy flow.





Gary Ittner

Valves, Fittings,
Flanges, Alloys &
Oilfield Supply

Rory Isaac

Business Development

Scott Hutchinson

North America Operations

Jim Dionisio

Energy Tubular Products

DISCLAIMER

Copyright © 2014 MRC Global - This information is confidential and was prepared by MRC Global for the use of our customers; it is not to be reproduced nor relied on by any third party without MRC Global's prior written consent. Unless otherwise noted, all monetary references in InSight are in USD.