Tenaris acquires 48% stake in Saudi Steel Pipe

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Tenaris acquires 48% stake in Saudi Steel Pipe

Global tube manufacturer and supplier Tenaris has acquired a 47.79% of the shares of Saudi Steel Pipe Company (SSP), for approximately US$141 million.SSP, a welded steel pipes producer listed on the Saudi stock market,Concrete Machinery Supplier has facilities in the Eastern Province in Saudi Arabia, with a manufacturing capacity of 360,000 tons per year.

Mariano Armengol, the CEO of the Luxembourg based company, will become the Managing Director and CEO of the Saudi company.Tenaris will begin consolidating SSP’s results as from January21 and 2019, the company said in a statement.

The acquisition means Tenaris expects to expand its industrial presence in Saudi Arabia, one of the largest markets for oil pipes.Seamless piping begins as a solid cylindrical hunk of steel called a billet. While still hot, billets are pierced through the center with a mandrel. The next step is rolling and stretching the hollow billet. The billet is precisely rolled and stretched until it meets the length, diameter and wall thickness as specified by the customer order.

Some seamless pipe types harden as they’re manufactured, so heat treatment after manufacturing is not required. Others do require heat treatment. Consult the specification of the seamless pipe type you’re considering to learn whether it will require heat treatment.Generally, welded pipe was considered inherently weaker because it included a weld seam. Seamless pipe lacked this perceived structural flaw and was considered safer. While it’s true that welded pipe does include a seam that makes it theoretically weaker, manufacturing techniques and quality assurance regimens each have improved to the extent that welded pipe will perform as desired when its tolerances aren’t exceeded. While the apparent advantage is clear, a critique of seamless piping is that the rolling and stretching process produces an inconsistent wall thickness compared to the more precise thickness of steel sheets destined for welding.