ArcelorMittal announces that ArcelorMittal Tubular Products Jubail (AMTPJ) - its Saudi Arabian joint venture with the Public Investment Fund (PIF) - has completed the acquisition of Jubail Energy Services Company (JESCO) from TAQA Industrialization and Energy Services Company. The transaction, which reaffirms ArcelorMittal's commitment to Saudi Arabia and the country's Vision 2030 plan, creates a regional champion by combining Saudi Arabia's two leading tubular products producers.
The transaction brings multiple benefits for all stakeholders in the Kingdom of Saudi Arabia, including AMTPJ customers such as Saudi Aramco, as well as both shareholders. These include:
Economies of scale through the creation of the largest producer of seamless pipes in the Middle East
Combined annual capacity of 1 million tonnes and a highly diversified quality product offering.
The opportunity to derive synergies and improve cost competitiveness across multiple areas including raw material procurement, sales and marketing logistics, inventory optimisation and asset utilisation.
Strengthened financial position and shareholder base in partnership with PIF.
ArcelorMittal's shareholding in AMTPJ, which will operate under the joint management control of ArcelorMittal and PIF, will reduce to approximately one-third (from 41%) with PIF's shareholding correspondingly increasing to approximately two-thirds.
Commenting, Gabriel Monti, incoming CEO, AMPTJ, said:
'Combining AMPTJ with JESCO creates a new regional champion capable of delivering first-class products and services to our expanded customer base. We fully intend to capture the synergies resulting from this transaction which will further strengthen our competitiveness. I would like to thank all employees from both companies for the patience and commitment they have shown throughout the transaction process. Their professionalism has been exemplary, and I am confident they will feel tangible benefits from this transaction. I'd also like to thank the Ministry of Investment of Saudi Arabia for the enabling role it played in facilitating this transaction.'
ArcelorMittal SA published this content on 31 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2021 12:11:02 UTC.