Mubadala Acquires 49% Stake in Tubacex Group
Tubacex Group, a global leader in advanced industrial solutions for the energy and mobility sectors, has formed a strategic alliance with Mubadala Investment Company, which has acquired a 49% stake in Tubacex’s Oil Country Tubular Goods (OCTG) business.
This $200 million investment solidifies Tubacex’s growth trajectory in the OCTG market, particularly in the Middle East, Tubacex Group, which is headquartered in Spain said.
This finalised partnership is in line with the UAE’s “Make it in the Emirates” initiative, promoting industrial growth and local manufacturing, and demonstrates Mubadala’s commitment to responsible investment in building a knowledge-based economy in the UAE.
Mubadala will play a key role in expanding local manufacturing capabilities to ensure a secure supply of CRA OCTG solutions for gas exploration, which is a critical factor in the global energy transition.
With this investment, Tubacex is poised to accelerate growth in its low carbon business and pursue mergers and acquisitions, strengthening its financial position and advancing the NT2 strategic plan goals of exceeding $217.95 million in EBITDA and reaching $1.31 billion to $1.53 billion in revenue by 2027. This will also position the company as a primary OCTG supplier in the Middle East.
This collaboration is further enhanced by Tubacex’s new corrosion resistant alloys (CRA) OCTG finishing and threading plant in Abu D The sovereign wealth fund signed the acquisition agreement with Tubacex in May, with the transaction initially valued at $150 million.
Mubadala Invests in OCTG Plant
The acquisition is expected to see Mubadala investing in Tubacex’s new OCTG plant in Abu Dhabi as part of the agreement, slated to be operational by the year’s end.
TUBACEX has focused its strategy on getting closer to the end user, becoming a long-term strategic partner for the comprehensive supply of CRA OCTG solutions, which includes tubes and threads, as well as other complementary services (logistics, stock management and downhole technical services) for gas extraction and production.
The forthcoming construction of a tube and thread manufacturing plant in Abu Dhabi, involving investment of $100 million and creating 150 jobs, will guarantee the reliable supply for large scale projects, such as the one signed with Abu Dhabi National Oil Company (ADNOC) in June 2022, and strengthens TUBACEX’s positioning and commitment in the Middle East, a key strategic region as it concentrates the largest volume of worldwide activity for gas extraction and production.
TUBACEX secured the its largest ever award with ADNOC worth in excess of 30,000 tons over ten years for the supply of comprehensive solutions for gas extraction in the Middle East. This award builds on other multi-annual contracts signed in recent weeks for the manufacturing of umbilical, nuclear and aerospace tubes, giving TUBACEX a total backlog of more than $1.63 billion.
