CHICAGO OAO TMK has acquired a 55-percent stake in Omans Gulf International Pipe Industry LLC (GIPI), as the Russian company seeks to boost its global presence as a supplier of energy tubulars to the oil and gas industry.
The steel tube and pipe maker, based in Moscow and parent of Downers Grove, Ill.-based TMK Ipsco, said Monday that the agreement would see GIPI folded into TMKs global production and sales network. TMK will also manage GIPIs plant and its sales.
The financial terms of the deal were not disclosed.
"This will allow TMK to further strengthen its position in the Middle East, adding operations on the ground to its existing sales organization in the region," TMK chief executive officer Alexander Shiryaev said in a statement.
GIPI supplies pipes to oil and gas companies in Gulf Cooperation Council countries, TMK said.
Other GIPI shareholders include Muscat, Oman-based Oman Investment Corp., Kuwait City-based Gulf Investment Corp., and Seoul, South Korea-based Posco P&S, a subsidiary of South Korean steelmaker Posco Ltd.
The Muscat-based company, established in January 2007, has a production capacity of more than 250,000 tonnes per year, according to the companys website.