ReedHycalog to close their once world beating PDC Bit plant in Stonehouse, England

NOV/ReedHycalog’s Stonehouse, PDC manufacturing plant is to close, the latest in a series of seemingly daft management decisions. Is there method in the madness though; that NOV having failed for years to make a go of the Drill Bit business, has finally decided to package up the whole thing for a divestment to somebody more interested? Or is it just inept leadership slowly dragging down this once proud product line.

Stonehouse, the heartland of ReedHycalog’s PDC Bit development since the 1970's when Roller Cones were king. This is where the first ReedHyclog PDC Bit designs were created for the North Sea, where the world beating TReX cutter technology came into being, a technology still licensed around the world.

Make no mistake, no matter how it's dressed up by management, closing Stonehouse is a seismic event for those at ReedHycalog, not only for those losing their jobs but for the ones left behind as well.

This leaves Conroe TX, as the last remaining Drill Bit plant of any substantial size, although there is some manufacturing capability in Saudi Arabia and Russia, Singapore having closed a few months ago.

Stonehouse 1974 - 2019 RIP

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Nice article but your timeline is off somewhat. D&S, Ltd. out of Stonehouse did make and run their first steel body PDC's in the marls of the North Sea and Middle East and by the late 70's tried an entry into the US without upgrading their designs for water base mud. By 1980 NL Hycalog started their own matrix PDC line (JetPax) that did very well in the STX, GOM, until they were replaced when NL Hycalog bought D&S, Ltd in 83. So, Hycalog's first PDC bits were in 1980.

"All there (their) efforts in (USA/Canada)" Well Ulterra are not exactly slacking off in Saudi Arabia, with probably the most important customer outside of North America. They also seem to be shifting product elsewhere in the Far and Middle East. They also have one less Hycalog facility to worry about.

Ulterra are strong in the USA and Canada and have put all there effort in to these market’s, how many facilities do they have globally

Whilst ReedHycalog seems to be in terminal decline Uterra in the same period is doing very well thankyou showing that’s it down to management in both cases. Where was Ulterra 10 years ago?

The Drill Bit market has changed over the last several years with major markets only open to companies that package, on top of this development in materials and manufacturing processes have meant Bits last longer therefore less required, on top of this global rig count is down.
Businesses have to right size or they fail, it’s a fact of life.

No it is not the state of the Industry, it is the inept management. All three plants had survived all the downturns of the 80's and 90's. I had worked there for many years and grabbed the chance to retire and could foresee the inevitable after ownership by Baker, Camco, Schlumberger, Grant Prideco. NOV destroyed morale and the culture at least 10 years ago. This latest move was obvious to all, only the timing was in doubt.

Very sad for the employees worldwide. Thanks for the update,

It’s the state of the industry that has caused this to happen.
ReedHycalog has great employees everywhere they just have to many at this time and with no major markets in Europe....

But we make a better product here in the U.K , they are made by people with a good product knowledge and pride in their work, a very sad loss.

It’s a sad day closing this plant but America first comes to mind manufacturing back to the USA

I heard the x factor might have to switch to a later time slot... Gutted

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ReedHycalog to close their once world beating PDC Bit plant in Stonehouse, England

11 replies (most recent on top)

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