Tenaris, a supplier of tubes and related services, has acquired a 47.79 per cent stake in Saudi Steel Pipe Company (SSP) to expand its industrial presence in Saudi Arabia
The company stated that it has bought the SSP’s share for a total amount of SAR 529.8mn (approximately US$141mn).
SSP’s facilities are located in the eastern province of the Kingdom of Saudi Arabia (KSA) and have a manufacturing capacity of 360,000 tonnes per year.
Tenaris, which started its operations in 1980 and serves energy, industrial and commercial segments, aims to supply products with major national oil companies in the region, including Saudi Aramco.
Tenaris will begin consolidating SSP’s results from 21 January 2019. The company has been serving the Saudi market for decades, and the combined portfolios coupled with the strengthened technical capabilities will allow Tenaris to better meet customers’ requirements.
Mariano Armengol, who has been appointed as managing director and CEO for SSP, said, “The official integration of Saudi Steel Pipe into Tenaris marks an important step to further expand the company’s footprint and capabilities in Saudi Arabia."
Ahmed Al-Debasi, SSP’s former managing director and newly appointed chairman of the Board of Directors, commented, “The integration will strengthen our technical capabilities, allowing us to better meet customer requirements and become an industrial hub for the region.”
SSP operates five pipe production lines in Saudi Arabia. Tenaris has an OCTG threading facility in Dammam that produces more than 100,000 tonnes of goods per year.
The company concluded that the combined portfolio will provide Saudi Aramco and regional customers with a comprehensive range of products that includes welded pipes, commercial pipes and a full range of line pipes, as well as expanded services including coating and bending.
