Tenaris to Follow Growing Demand in Middle East, Africa, Asia

Techint Group’s CEO Paolo Rocca said Tenaris plans US$ 1 billion of investment to improve the competitiveness. He said to a reporter of Japan Metal Bulletin in Tokyo before conference of World Steel Association Tenaris tries to find chance to acquire competitive assets as before. The firm tries to follow growing demand through the worldwide network including new plant in Saudi Arabia and new marketing structure.

Mr. Rocca, who is chairman of World Steel Association, sees world wide energy development activity recovers and rig count increases. He said Tenaris’ order receipt is more than current shipment level and operation rate is around 80% of the recent peak. He said the production increased by 2% to 1.454 million tonnes in January-June from same period of 2009. He expects the sales will increase in the second half year when demand increases for high grade products including special grade joint and Dopeless products.

Mr. Rocca said Tenaris launched first plant in Saudi Arabia in September to make oil country tubular goods and high valued joint. He said the firm tries to follow active demand in Middle East by transferring headquarters of international marketing from Houston, USA to Dubai, UAE improving the service in Africa, Europe and Asia.

Mr. Rocca also said the firm launched a joint venture with state oil company of Equatorial Guinea, GEPetrol to provide pipe and service in the country. He said Tenaris Tamsa is building new rolling mill to make pipe with up to 7 inches of diameter while Tenaris Dalmine studies to make wider products line for high end products.

Mr. Rocca said Qingtao plant with around 40,000 tonnes of annual output capacity increases the special joint to serve growing demand in China. He said the firm tries to follow high end demand through acquired Seamless Pipe Indonesia Jaya with around 120,000 tonnes of annual processing capacity of heat treatment and special joint.

Mr. Rocca said the firm has strong connection with major users through long term contract, which covers around 80% of the total sales. He said the firm tries to improve the process and products through continuous effort.

Mr. Rocca said NKK Tube, which celebrated 10 years anniversary on October 1 with Mr. Rocca, will lead the seamless tube market through innovative development of the products, advanced quality control and process improvement. He said the joint venture agreement is due to 2015 and the firm will extend the agreement beyond that.