Tenaris has completed its acquisition of a substantial stake in Saudi Steel Pipe (SSP), a local welded pipe producer in Saudi Arabia, boosting its industrial foothold in the country.
The agreement to acquire 47.79 percent of shares of Saudi Steel Pipe from a private group for approximately $141 USD million was first announced in September 2018.
“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,” said Mariano Armengol, who has been appointed as Managing Director and Chief Executive Officer of SSP. “We see clear opportunities for business growth in the Kingdom and the region, through expanding SSP’s products and services portfolio and maximizing local preference.”
Tenaris has been serving the Kingdom for nearly a decade and operates two premium threading facilities in Dammam, in the Eastern Province of the Kingdom of Saudi Arabia.
Saudi Steel Pipe, also located in Dammam and now a Tenaris-managed operation, has the capacity to produce 360,000 tons of welded steel pipes per year. With the integration, Tenaris will add welded pipes, commercial pipes and a full range of line pipes to its existing portfolio, as well as expand its services scope with coating and bending.
Tenaris now has approximately 1,000 employees in Saudi Arabia.
With the transaction complete, there will be a period of further collaboration, definition, and transition to ensure a safe integration of employees, and facilities, into Tenaris’s global standards for quality, health, safety and environment.