Tenaris and Sidor sign agreement to acquire Posven

Tenaris and Sidor sign agreement to acquire Posven

According to recent news in the market, seamless pipe producer Tenaris and Venezuelan Sidor have signed an agreement to purchase assets of Posven, a hot briquetted iron (HBI) producer in Venezuela. The deal, signed for the assets of HBI plant producing 1.5 million tons per annum, is concluded at $120 million. It is stated that the acquisition of the plant will be materialized through establishing a new company, in which Tenaris will hold 55% stake and Sidor will hold 45%. Meanwhile, Venezuelan producer Sidor is forced to suspend operations and all steel shipments due to labor strike that has been continuing for ten days. Sidor ships an average of 300'000 tons monthly. That Sidor stopped its operations due to strike affected not only the workers and stockholders of the company but also companies depended on steel products of Sidor in the region and in the country negatively.