Oman-based steel pipes and tubes producer Al Jazeera Steel Products has approved the establishment of two wholly-owned subsidiaries in the United States, according to a regulatory filing submitted to the Muscat Stock Exchange (MSX).
The announcement was disclosed by the company in a recent MSX filing, citing a resolution by its board of directors to set up the subsidiaries within six months. The United States is described as one of the company’s top global export destinations.
Corporate structure and capital details
According to the company’s filing, the planned structure will consist of:
- A US holding company incorporated as a corporation, wholly owned by Al Jazeera Steel Products Co SAOG, with a capital of $2 million
- An operating company incorporated as a Limited Liability Company (LLC), wholly owned by the US holding company, with a capital of $1.5 million
“The proposed structure is intended to support the Company’s international operations and business activities in the United States,” the company stated in its filing.
The total initial capital allocated for the two entities amounts to $3.5 million.
As stated by Al Jazeera Steel in its regulatory disclosure, the move is designed to strengthen its long-term international footprint, particularly in the US market where the company already sells a significant portion of its products. By establishing wholly-owned subsidiaries, the company will gain greater control over the importation, marketing, and sales of its products in the United States.