Saudi Steel Pipe Co and Korean TSM Tech launch JV
JV to produce parts for power generators and desalination plants
The Saudi Steel Pipe Company has formally entered an agreement with Korean firm TSM Tech for an joint venture (JV) producing piping for power generators and desalination plants, the Saudi firm has announced in a Tadawul stock exchange filing.
The partners will invest SR 80 million (US$ 21.3 million) for the first phase of the Titanium & Steel Manufacturing Company (TSM Arabia) JV factory, to be built in Damman, Saudi Arabia.
The factory is expected to start production in 2012, and will manufacture heat exchangers, pressure vessels, reactors, capacitors and piping. Once the second stage of the project is completed, its capacity will be 36,000 tons.
The Saudi Steel Pipe Company will own 70 percent of the JV, with TSM holding the remaining 30 percent stake.
TSM will also provide technical assistance to the project over the next 10 years, which includes the training of Saudi staff, receiving SR5 million in exchange.