Thursday, Feb 15, 2007
DUBAI (Zawya Dow Jones)--Arcelor Mittal, the world's biggest steel producer, said Thursday that it has signed a joint venture agreement with Saudi Arabia's Bin Jarallah Group for the design and construction of a steel seamless tube mill in the kingdom.
The two companies signed the agreement on Wednesday.
The facility, to be located in Jubail Industrial City on the Persian Gulf, will have production capacity of 500,000 tons a year of seamless tube, Arcelor Mittal said in an emailed statement.
About two thirds of the plant's output will be used for tubes required by the oil industry, with the remainder to be used for line pipe, the statement said.
Steel semi products for the mill will be sourced from Arcelor Mittal steel plants, the company said.
Construction is planned to start at the end of the first quarter of 2008 and is due to be completed by the last quarter of 2009.
The mill is expected to employ as many as 420 people, the company said.
Arcelor Mittal, which will hold a 51% share in the project company, will have management and operation rights. Bin Jarallah Group will own the remaining 49%.
The mill will partially be funded by the Saudi Investment Development Fund.
Arcelor Mittal reported combined revenues of $65.4 billion in the first nine months of 2006, the company said.
-By Oliver Klaus, Dow Jones Newswires, +9714 229 2806 Oliver.Klaus@dowjones.com
Copyright (c) 2007 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
15-02-07 0950GMT
