Archive for the ‘Shumate Industries SHMTE’ Category

Dutton Associates Featured Company: Shumate Industries, Inc. (SHMT.OB)

Tuesday, July 1st, 2008

Shumate Industries, Inc. currently consists of two divisions servicing the oil and gas exploration industry. The Shumate Machine Works division operates as an oil and gas field services company, engaging in contract machining and manufacturing of products, parts, components, and assemblies. The Hemiwedge Valve division develops and manufactures various valve products. The company is based in Conroe, Texas.

The Shumate Machine Works division manufacturers a significant and varied product line, which includes expandable tubular products, such as liner hangers, launchers, and sand screens for energy field service applications. It also manufactures service part assemblies and sub-assemblies, measurement products, directional drilling products, and many other parts and tools which enable its customers to explore and develop oil and natural gas fields.

The Hemiwedge Valve division has developed several useful valves including the Hemiwedge cartridge valve, a quarter-turn hemispherical wedge valve, the Hemiwedge downhole isolation valve for drilling applications, and the Hemiwedge subsea high-pressure valve for undersea chemical injection applications.

In June 2008, Shumate Industries Board of Directors announced that it had directed management to pursue various strategic options including the potential sale of the Shumate Machine Works division. The company believes that the valve division offers shareholders more value, and will divest the machine works enterprise to finance and develop the higher value-added valves.

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