The board of Saudi Steel Pipe Company has approved the initiation of voluntary liquidation procedures for its wholly owned subsidiary, Titanium & Steel Manufacturing Co. Ltd. (TSM Arabia), which has a capital of SAR 32 mln (USD 8.5 mln), according to a stock exchange filing.
Saudi Steel Pipe had previously announced in 2021 the sale of TSM Arabia’s main operating assets to Koch Chemical Technology Group Saudi Arabia Limited.
Established in 2011 as a joint venture between Saudi Steel Pipe (70pct) and South Korea’s TSM Tech Company (30pct), TSM Arabia manufactures process equipment including heat exchangers, pressure vessels, reactors, condensers and pipe connections. Saudi Steel Pipe acquired the remaining 30pct stake in April 2017.
The move aligns with the company’s strategy to focus on its core tubular and services businesses serving the oil and gas, industrial and construction sectors. Saudi Steel Pipe said the financial impact of the liquidation is expected to be immaterial once the transaction is completed and consolidated.
SSP manufactures and supplies electrically resistance welded (ERW) steel pipes for the energy, industrial and construction sectors across the Middle East and North Africa. Its product range includes oil country tubular goods (OCTG), line pipes, API and premium connections, accessories and related services. The company has an annual capacity of over 400,000 tons, producing pipes from 1/2 inch to 20 inches OD, with coating services up to 30 inches and bending capabilities up to 60 inches OD. In January 2019, Tenaris acquired a 47.79pct stake in SSP for around USD 141 mln, after which the company was rebranded as TenarisSaudiSteelPipes.
1 USD / 3.75 SAR
