China’s Dalipal Holdings, led by Chairman Meng Fanyong, has signed a letter of intent to build a seamless steel pipe factory at Saudi Arabia’s King Salman Energy Park (SPARK). The plant will cover more than 1,000,000 m2 and serve the Kingdom’s growing energy sector.
Dalipal Holdings’ board of directors confirmed the signing of this agreement with SPARK during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), as stated in a stock exchange filing.
To manage this project, Dalipal has set up a subsidiary, Dalipal International, in Dammam, Saudi Arabia. The company has also engaged a Saudi financial advisor to assist with fundraising and other related services, according to the filing.
The plant’s products will primarily target international markets, including the Middle East and Africa. In a related development, SPARK has also signed a letter of intent with Indian pipe manufacturer Man Industries to build a 360,000 m2 pipe manufacturing facility. In August 2024, Man Industries revealed plans to establish a new plant in Dammam, Saudi Arabia, with an estimated project cost exceeding USD 71 mln. This new facility will feature line pipe manufacturing and coating capabilities, with a production capacity of 0.4-0.5 mln tons to meet the growing demand in Saudi Arabia.
