East Pipes Integrated Company for Industry, a manufacturer of Helical Submerged Arc Welded (HSAW) pipes, has signed a project contract with the Saline Water Conversion Corporation (SWCC) amounting to $132mn (SAR 497mn) to supply and deliver steel pipes for Water Transmission System.
The project was awarded at the beginning of this year for a duration of 12 months, and the financial impact of the deal will reflect in East Pipes’ financials in 2022/2023.
“With a rising population, economic growth, and urbanisation, Saudi Arabia has significant market potential, and we stand in a pole position to capitalise on national initiatives such as the expansion of water pipelines across the Kingdom, including projects that were delayed by the pandemic and are now coming on stream,” said Ali Al Makrami, Vice President – Commercial at East Pipes.
“As Saudi Arabia continues to witness strong growth opportunities and ongoing developments in infrastructure, we look forward to working together on more projects in the future.”
The Water Transmission System is expected to be completed by 2023.
It is owned and managed by SWCC, which is responsible for developing and operating power and desalination plants and supplying various regions in the Kingdom with desalinated water.
The demand for HSAW pipes is expected to be strong in the post-pandemic landscape and rise over the next 5 years. National initiatives in both the water and oil & gas sectors, including those under Vision 2030, present East Pipes with a robust outlook for winning projects.
Between FY19 and FY21, the company was able to produce and deliver more than 1 million tonnes of pipeline over almost 30 months.