Saudi Arabia partnership for a seamless tube mill

Arcelor Mittal has signed a joint venture agreement with the Bin Jarallah Group of companies for the design and construction of a seamless tube mill in Saudi Arabia.

The facility is to be located in Jubail Industrial City, north of AL Jubail on the Persian Gulf. The mill will have a capacity of 500,000 tonnes per year, around two thirds of this will be used for tubes in the oil industry and the remainder for line pipes (sizes ranging 4″ to 14″).

Sudhir Maheshwari, Executive VP, Finance and M&A and member of Arcelor Mittal’s Group Executive Committee, said “This project gives us a strategic opportunity to enter the Middle East’s, and in particular Saudi Arabia’s thriving markets. Its location provides access to international sea lanes through the Persian Gulf as well as proximity to energy sources. The Al Jubail project will allow us to strengthen our relationship with Saudi Aramco, who will be one of the key customers of the mill. It will position Arcelor Mittal’s pipes and tubes business, which already has facilities in Eastern Europe, North America, Africa and Kazakhstan, to best supply the world’s largest markets”.

Construction is due to commence at the end of the first quarter for 2008 and be completed by the last quarter of 2009. Once completed it is expected to employ some 420 people. It will be partially funded by the Saudi Investment Development Fund.