East Pipes signs $132 million steel pipes contract with SWCC for water desalination

Helical Submerged Arc Welded specialist supplying and delivering steel pipes for Water Transmission System

East Pipes Integrated Company for Industry, a leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes, has signed a project with the Saline Water Conversion Corporation (SWCC) amounting to SAR 497 million ($132.4 million) to supply and deliver steel pipes for Water Transmission System.

The project was awarded on 12 January 2022 for a duration of 12 months, and the financial impact of the deal will reflect in East Pipes’ financials in 2022/2023.

“We are delighted to have entered into a new agreement with our long-standing partner SWCC to supply pipes for Water Transmission System,” noted Mohammed Al Shaheen, CEO, East Pipes. “As a manufacturer of choice in Saudi Arabia, we are committed to working with key local players to contribute to Vision 2030 as well as Saudi’s transformation journey. With a rising population, economic growth, and urbanization, 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.”

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.

According to Ali Al Makrami, VP – Commercial at East Pipes, SWCC has been a major client for several years now, and from Shoaibah, Rabigh and Yanbu to Jubail, Ras Al Khair, and Taif, with the firm forming an integral part of the organisation’s water transfer systems.

“Our collaboration on yet another project is a testament to our track record in project execution and delivery, and also our leading position as the supplier of choice in the market. 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 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 tons of pipeline over almost 30 months.

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