Arabian Pipes Company announced that its Board of Directors has approved the establishment of a drilling pipe coupling factory at the company’s facility in the Second Industrial Area in Riyadh, according to the company’s stock exchange filing.
The project will have an annual production capacity of up to 50,000 units and is aimed at localizing pipe coupling manufacturing technology, supporting supply contracts for oil and gas casing pipes, meeting domestic market demand, and developing export capabilities. The company said the project will add strategic value by enhancing local content and strengthening its position in the energy sector supply chain.
Drilling pipe couplings are critical components in oil and gas drilling operations, used to connect individual lengths of drill pipe and casing. Designed to withstand high pressure, torque, and harsh downhole environments, couplings play a key role in maintaining the integrity and safety of drilling strings.
The total estimated investment is SAR 30 mln (USD 8 mln), to be financed through the company’s own resources and additional funding sources. Subject to regulatory approvals, construction is expected to begin in Q1 2026, with project completion targeted for Q1 2027.
Commercial production is expected to commence in Q2 2027. Project execution will be carried out by specialized contractors and suppliers after all required approvals are obtained, the company said.
APC, a manufacturer specializing in ERW pipes and LSAW pipes, has an annual production capacity of 160,000 tons and 300,000 tons for ERW and LSAW pipes, respectively. The company operates two factories located in Riyadh and Jubail.
1 USD / 3.75 SAR
