RAS Al-KHAIR, Saudi Arabia – Four companies from four countries (Saudi Arabia, Germany, the Czech Republic, and India) have formed an alliance to build a plant to manufacture seamless pipe in Ras Al-Khair, Saudi Arabia.
In the first stage of the project, the production capacity is expected to reach 600,000 tons of steel.
The plant (believed to be at the final stage of contract signing, which is set for the beginning of 2015) will be the first one in theMiddle East to produce seamless pipes with diameters of 19 mm to 137 mm (0.75 in. to 5.4 in.). The facility will manufacture drill pipes, oil and gas well covers, pipeline steam boilers, heat exchangers, petroleum furnaces, construction pipelines, mechanical equipment, and small pipelines.
Salama Al-Enizi, chairman of Gulf Tubing Co. GTC and the owner and developer of the project, says that cooperation deals have been reached in advance withSaudi Aramco and Saudi Basic Industries Corp. (SABIC), as well as the Royal Commission in Jubail and Yanbu to supply these companies with certain products produced in the plant.
The plant is estimated to cost $1 billion. The project will be financially managed by Alinma Investment.