Saudi Steel Company's $141m stake acquired by Tenaris

Saudi Steel Company's $141m stake acquired by Tenaris
A $141m-worth stake has been acquired in SSP by Tenaris [representational image].
Published: 24 January 2019 - 6 a.m.
By: Oscar Rousseau

Luxembourg-based pipeline producer Tenaris has a bought a 47% stake in Saudi Steel Pipe Company (SSP) to expand its presence in the kingdom where it sells to industry giant Saudi Aramco.

Tenaris paid $141m (SAR529.8) for a stake in Tadawul-listed SSP, which manufactures thousands of tonnes (t) of pipes per year for the kingdom’s oil and gas industry.

Both companies sell to energy heavyweights such as Saudi Aramco, and expect that their combined portfolios and technical capabilities will improve their customer offering.

Mariano Armengol, who has been named managing director and chief executive officer of SSP following the shake-up, called the acquisition an “important step” to expand the firm's footprint in the kingdom.

“We are very positive to what the future holds in terms of business growth and people development,” Armengol added.

As part of the changes at SSP, former managing director, Ahmed Al-Debasi, has been named chairman of the board of directors. He said the business was pleased to have secured the financial and international muscle of Tenaris, which he said would enhance its work in the kingdom.

“We are pleased to join Tenaris, a global leader that shares our industrial legacy, our commitment to customers, and our willingness to contribute to Saudi Arabia’s oil and gas development,” he said. "The integration will strengthen our technical capabilities, allowing us to better meet customer requirements and become an industrial hub for the region.”

SSP has factories in Saudi Arabia’s Eastern Province and operates five production lines in the region, where it manufactures a mixed portfolio of pipes, principally sold to the kingdom’s oil and gas sector.

Tenaris has a complex in Dammam that makes oil country tubular goods, which are used for oil and gas drilling. The factory produces more than 100,000t of goods per year. The firm said it will start to consolidate the results from SSP from 21 January, 2019.

Click here to add your comment

Please add your comment below
Your email address will not be published