Toronto fiber optics company signs deal worth $1.5 million with Saudi holding group
FOX-TEK will manufacture up to 20 of its PinPoint systems for Zamil for sale in Saudi Arabia in a deal worth about $1.5 million. The deal is conditional on Zamil receiving export credit financing and securing clients to contracts of two to three years for data tracking services.
“Zamil made the purchase as a capital asset investment and will sell the systems and tracking services to petroleum and chemical corporations in Saudi Arabia,” said FOX-TEK CEO Allen Lone.
FOX-TEK will be responsible for the installation of the systems once they are sold in Saudi Arabia, he said. The company will also provide installation and monitoring training to staff in Saudi Arabia as a condition of the deal.
Lone said the company will make a small number of personnel additions to complete the project in engineering and production.
The PinPoint sensor and monitoring systems are manufactured in Toronto but, the company plans to shift manufacturing to company headquarters in Oakville, Ont.
The PinPoint systems consist of a fiber optic sensor sleeve and a monitoring system. The sleeves contain a number of electrical field mapping sensors and thermocouple probes that detect corrosion growth defects inside piping. The sleeves are made of non-conductive, glass re-inforced polyester that is vacuum molded around the diameter of the pipe.
The monitoring systems are used to determine all fiber optic sensor power, control terminations and telemetry. They also feature 24/7 remote monitoring capabilities that can improve maintenance operations, avoid shutdowns and prevent leaks.
Developing and manufacturing fiber optic sensor systems, FOX-TEK supplies clients in the oil and gas, energy, chemical, mining and civil structure sectors. The company is a wholly-owned subsidiary of Fiber Optics Systems Technology Inc., which also owns Marcon International Inc. Marcon is involved in the industrial supply of equipment and parts to clients in the oil and gas industry. It has also done a number of contracts with various US government agencies, including the US Army and the US Department of Homeland Security.