Arcelor Mittal to form JV with Bin Jarallah Group

Arcelor Mittal, the world's largest steelmaker, has today announced the signing of an agreement with the Bin Jarallah Group of companies for the construction of a joint venture seamless tube mill in Saudi Arabia. The seamless tube mill, which will be built in Jubail Industrial City, will have an annual production capacity of 500,000 mts. According to company's statement, about two thirds of the mill's production will be for tubes used in the oil industry (OCTG), while the remainder will be used for line pipe, in sizes ranging from 4" to 14". Semi-finished products for the state-of-the art mill will be supplied by Arcelor Mittal plants. The construction of the mill is slated for the end of Q1 of 2008, while the mill is expected to be completed by Q4 of 2009. In line with the agreement, Arcelor Mittal will hold a 51 percent share in the mill, while the Bin Jarallah Group will hold the remaining 49 percent. With this project, Arcelor Mittal makes its entry to the Middle Eastern market.