Tenaris has closed its previously-announced acquisition from a private group of 47.79 per cent of the shares of Saudi Steel Pipe Company (SSP), for a total amount of US$141mn
SSP?s facilities are located in the eastern province of Saudi Arabia and have a manufacturing capacity of 360,000 tonnes per year.
Tenaris is set to begin consolidating SSP?s results from 21 January 2019 and together will have more than 1,000 employees in Saudi Arabia.
The result of the transaction is expected to expand Tenaris?s industrial presence in Saudi Arabia, one of the largest markets for OCTG and line pipe products, and the range of products it supplies to Saudi Aramco.
?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, managing director and CEO of SSP.
Commenting on the acquisition, Ahmed Al-Debasi, former managing director and newly appointed chairman of the board of directors at SSP, noted, ?The integration will strengthen our technical capabilities, allowing us to better meet customer requirements and become an industrial hub for the region.?
The combined portfolio is expected to provide Saudi Aramco and regional customers with a comprehensive range of products, which includes welded pipes, commercial pipes and a full range of line pipes, as well as expanded services offer incorporating coating and bending.