Argentinian steelmaker Tenaris, the largest global producer of steel pipes for the oil industry, has announced that the acquisition of Seamless Pipe Indonesia Jaya (SPIJ), the Indonesian OCTG processing business, has been completed from the following companies; Indonesian pipe, metal and building group Bakrie & Brothers TbK, Green Pipe International Limited, a leading supplier of pipeline software solutions to the international oil and gas industry, and Indonesian steel mill Cakrawala Baru.
SPIJ, which has an annual processing capacity of 120,000 mt and 500 employees, will allow Tenaris to strengthen its position in Southeast Asia.
Prior to the merger, Tenaris had maintained a commercial and technical alliance with SPIJ for over a decade. The new facilities will reinforce Tenaris's position in the region, already established in Indonesia with a threading facility in Batam.
Commenting on the acquisition, Tenaris Indonesia's manager Lucio Costarrosa said, "The acquisition of SPIJ into Tenaris is a very important step forward to increasing our market presence in Indonesia and Southeast Asia as a whole. Together with our plant in Batam, we are consolidating a strong regional production and service unit. Our customers will be able to benefit not only from shorter lead times but also higher product specifications, local service bases and much more competitive products under Tenaris's quality and safety standards."
As SteelOrbis previously reported, on February 25 Tenaris signed an agreement to acquire a 77.45 percent holding in SPIJ from Bakrie & Brothers TbK, Green Pipe International Limited and Cakrawala Baru, for a purchase price of $73.5 million, with $24.9 million being payable as consideration for SPIJ's equity and $48.6 million as consideration for the assignment of certain sellers' loans to SPIJ.