ArcelorMittal Tubular Products Al-Jubail (AMTPJ) Market Research Report

Background

Overview

ArcelorMittal Tubular Products Al-Jubail (AMTPJ) is a state-of-the-art seamless tube mill located in Jubail Industrial City, Saudi Arabia. Established in 2008 as a joint venture between ArcelorMittal, the global leader in the integrated steel and mining sector, and Al-Tanmiah Industrial and Commercial Investment Company, AMTPJ commenced operations in 2014. The facility is strategically positioned to serve the rapidly growing energy markets of Saudi Arabia, the Middle East, North Africa, and beyond.

Mission and Vision

AMTPJ aims to provide best-in-class quality, reliability, value, and innovation to both local and international customers. The facility is designed to produce a full range of products suited for the upstream, midstream, and downstream energy markets, as well as for industrial and process applications.

Industry Significance

As the largest producer of seamless pipes in the Middle East, AMTPJ plays a pivotal role in supporting the region's energy infrastructure. The facility's advanced manufacturing capabilities contribute significantly to the localization of steel pipe production, aligning with Saudi Arabia's Vision 2030 objectives to enhance industrial self-sufficiency and economic diversification.

Key Strategic Focus

Core Objectives

Capacity Expansion: AMTPJ has secured financing for a major expansion project, adding 200,000 tons of heat treatment capacity and 150,000 tons of advanced premium OCTG threading capacity. This expansion aims to meet the increasing demand for high-spec seamless carbon steel tubes in the MENA+ energy markets.

Technological Advancement: The facility employs the Premium Quality Finishing (PQF®) technology, supplied by SMS Meer of Germany, to produce high-quality seamless tubes.

Areas of Specialization

Oil Country Tubular Goods (OCTG): AMTPJ specializes in manufacturing OCTG products, including casing and tubing, designed to meet the stringent requirements of the oil and gas industry.

Line Pipes: The facility produces seamless line pipes suitable for onshore and offshore operations, refineries, and fuel storage facilities.

Key Technologies Utilized

PQF® Technology: This advanced technology ensures uniform pipe wall thickness, improved pipe straightness, and efficient use of energy resources.

CARTA® Technology System: This system continually adjusts roll positions and speed settings based on live production data, optimizing the manufacturing process.

Primary Markets Targeted

Saudi Arabia: Serving the domestic energy sector, including major clients like Saudi Aramco.

Middle East and North Africa (MENA): Supplying seamless tubes to various countries within the MENA region.

International Markets: Exporting products to global markets, leveraging the strategic location of the Jubail facility.

Financials and Funding

Funding History

Acquisition of JESCO: In 2021, AMTPJ completed the acquisition of Jubail Energy Services Company (JESCO) from TAQA Industrialization and Energy Services Company. This strategic move combined Saudi Arabia's two leading tubular product producers, enhancing economies of scale and product diversification.

Capacity Expansion Financing: In May 2025, AMTPJ secured full financial backing from leading commercial banks in Saudi Arabia for its heat treatment and advanced premium OCTG finishing line expansion. This project aims to add 200,000 tons of heat treatment capacity and 150,000 tons of advanced premium OCTG threading capacity.

Notable Investors

Public Investment Fund (PIF): The Saudi Arabian sovereign wealth fund holds a significant stake in AMTPJ, reflecting its commitment to supporting industrial growth and Vision 2030 objectives.

Utilization of Capital

Expansion Projects: Investments are directed towards increasing production capacity and enhancing technological capabilities to meet the growing demand in the energy sector.

Technological Upgrades: Capital is allocated to integrating advanced manufacturing technologies, such as PQF® and CARTA®, to improve product quality and operational efficiency.

Pipeline Development

Key Pipeline Candidates

High Collapse Grades: Developed to meet the needs of deep wells, these grades offer enhanced resistance to external pressure.

High Strength Grades: Designed for deep wells, these grades provide superior strength and toughness under high-pressure and high-temperature conditions.

Stages of Development

Research and Development: Ongoing efforts focus on developing proprietary steel grades that surpass API requirements, including sour service grades, high collapse grades, and high strength grades.

Target Conditions

Sour Service Environments: Pipes designed to resist sulfide stress cracking in low pH and H₂S-containing environments.

High-Pressure and High-Temperature Wells: Pipes engineered to withstand extreme conditions encountered in deep wells.

Anticipated Milestones

Product Qualification: Achieving industry certifications and approvals for new steel grades.

Market Penetration: Expanding the adoption of advanced grades in regional and international markets.

Technological Platform and Innovation

Proprietary Technologies

PQF® Technology: Ensures uniform pipe wall thickness and improved pipe straightness.

CARTA® Technology System: Optimizes the manufacturing process by adjusting roll positions and speed settings based on live production data.

Significant Scientific Methods

Finite Element Analysis: Used to verify and validate new design concepts, including supporting customers with premium connection performance verification against complex operational scenarios.

Full-Scale Testing and Qualification: Conducted according to the latest industry standards to ensure product reliability and performance.

Leadership Team

Key Executives

Gabriel Monti: CEO of AMTPJ, leading the integration of JESCO and overseeing strategic initiatives.

Laurent Bardet: CEO of ArcelorMittal Tubular Products Al-Jubail, emphasizing the company's commitment to building a sustainable future.

Competitor Profile

Market Insights and Dynamics

Market Size and Growth Potential: The seamless steel pipe market in the Middle East is expanding due to increased energy infrastructure projects and industrial growth.

Industry Trends: There is a growing emphasis on local production to meet the demands of the oil and gas industry, supported by government initiatives like Saudi Arabia's Vision 2030.

Competitor Analysis

Jubail Energy Services Company (JESCO): Prior to its acquisition by AMTPJ, JESCO was a significant player in the Saudi seamless pipe market.

International Manufacturers: Companies like Benteler, Tubos Reunidos S.A., and Voestalpine A.G. have a presence in the European market for seamless steel pipes.

Strategic Collaborations and Partnerships

Jindal Shadeed Iron & Steel LLC: In July 2025, AMTPJ signed a two-year cooperation agreement with Jindal Shadeed for the supply of round steel bars, valued at up to $1 billion. This partnership aims to strengthen supply chains and promote sustainable industrial growth in the region.

Operational Insights

Strategic Considerations

Market Position: AMTPJ holds a dominant position in the Middle East's seamless pipe market, benefiting from its advanced manufacturing capabilities and strategic location.

Competitive Advantages: The facility's use of cutting-edge technologies like PQF® and CARTA®, along with its proximity to major energy hubs, provides a competitive edge in meeting the region's energy infrastructure needs.

Strategic Opportunities and Future Directions

Strategic Roadmap

Capacity Expansion: Ongoing investments aim to increase production capacity to meet the growing demand in the energy sector.

Technological Innovation: Continued focus on integrating advanced manufacturing technologies to enhance product quality and operational efficiency.

Future Business Directions