Tenaris announced today that it will form a joint venture with Inner Mongolia Baotou Steel Union Co., Ltd. to build a steel pipe premium connection threading plant to produce OCTG products in Baotou, China. Under the agreement, Tenaris will own 60% of shares in the new joint-venture company, while Inner Mongolia Baotou Steel will hold the remaining 40%.
A virtual signing ceremony was held in Baotou, China, on October 17, hosted by Baotou Municipal People’s Government.
Paolo Rocca, Tenaris Chairman and CEO, was connected to the ceremony from Argentina. “We very much recognize Baotou Steel’s industrial strength and are very pleased to form this partnership today. By combining our respective strengths and our commitment to industrial excellence, we believe that we can support the Chinese oil and gas industry with a world-class, high-quality OCTG product, 100% produced in China,” Rocca said.
The new plant will cover an area of approximately 30,000 square meters. It will take between 12 and 18 months to construct; the target date for starting production is in the fourth quarter of 2021.
The Chairman of Baotou Steel Group Wei Shuanshi attended the ceremony on site. Mr. Wei recognized the solid cooperative foundation between Tenaris and Baotou Steel in the past year. In his speech, Mr. Wei said, “This partnership is a successful example of creating competitive advantages with international cooperation. By introducing Tenaris’s advanced technologies and standards, the two parties will work together to better serve the fast-growing national oil and gas industry”
The project is strongly supported by the Baotou government regarding investment promotion policies. Meng Fanli, Baotou Municipal Party Secretary, led his management team in the city in attending the ceremony.
Wang Xiulian, Baotou’s deputy mayor, closed the event and said, “I believe the partnership between Tenaris and Baotou Steel is an important step to create value-added OCTG products to the national oil and gas industry. From the governmental side, we will further strengthen support to this joint venture project and provide good service to ensure smooth and successful implementation.”