April 29, 2009
On April 29, 2009, the acquisition of Seamless Pipe Indonesia Jaya (SPIJ) by Tenaris was completed. The Indonesian company, which has an annual processing capacity of 120,000 tons and 500 employees, will allow Tenaris to strengthen its position in Southeast Asia. With SPIJ, Tenaris will provide local OCTG processing with heat treatment and premium connection threading facilities.
Prior to the merger, Tenaris had maintained a commercial and technical alliance with SPIJ for over a decade. The new facilities will reinforce Tenaris’s position in the region, already established in Indonesia with a threading facility in Batam.
“The acquisition of SPIJ into Tenaris is a very important step forward to increasing our market presence in Indonesia and South East Asia as a whole,” said Lucio Costarrosa, Tenaris Country Manager Indonesia. “Together with our plant in Batam, we are consolidating a strong regional production and service unit. Our customers will be able to benefit not only from shorter lead times but also higher product specifications, local service bases and much more competitive products under Tenaris’s quality and safety standards.”
On February 25, Tenaris signed an agreement to acquire a 77% holding in SPIJ from Bakrie & Brothers TbK, Green Pipe International Limited and Cakrawala Baru, for a purchase price of US$72.5 million, with US$ 24.9 million being payable as consideration for SPIJ's equity and US$ 47.6 million as consideration for the assignment of certain sellers' loan to SPIJ.