AMTPJ launches OCTG inventory pilot with Saudi Aramco

ArcelorMittal Tubular Products Al-Jubail (AMTPJ), together with its subsidiary Jubail Energy Services Company (JESCO), has launched an oil country tubular goods (OCTG) vendor managed inventory (VMI) pilot with Saudi Aramco.

The initiative aims to strengthen the companies' supply chain integration by extending their services beyond manufacturing to provide an end-to-end mill-to-rig supply solution.

Under the pilot, manufacturing and inventory management will be more closely aligned with actual drilling demand, with the aim of improving material availability, supply responsiveness and operational efficiency.

ArcelorMittal Tubular Products Al-Jubail said the initiative marks a step towards becoming an integrated tubular solutions provider and improving the reliability of Saudi Arabia's energy supply chain.

Based in Jubail Industrial City, AMTPJ is a joint venture involving ArcelorMittal, Saudi Arabia's Public Investment Fund (PIF) and Al-Tanmiah Industrial and Commercial Investment Company. The company manufactures seamless steel pipes and tubes for the energy sector, including OCTG, line pipes and structural pipes.

AMTPJ acquired JESCO in 2021 alongside PIF. JESCO has an annual seamless tube production capacity of 400,000 tons, bringing the group's combined capacity to approximately 1 mln tons per year.