Chinese tubular products manufacturer Dalipal Holdings has signed a 25-year lease for a 1.03 mln sq m plot at King Salman Energy Park (SPARK) in Dammam, Saudi Arabia, where it plans to establish a manufacturing and R&D base for Oil Country Tubular Goods (OCTG), seamless steel pipes and other energy pipes.
The agreement was signed through Dalipal’s subsidiary Dalipal International for Industry with Energy City Development Company.
The planned facility, part of an estimated USD 2.1 bln investment, will produce high-end tubular products for the oil and gas industry, as well as pipes for hydrogen transmission. The company intends to supply customers across Saudi Arabia and the wider Gulf region, in addition to export markets including Europe and the US.
Dalipal’s expansion follows its successful qualification with Saudi Aramco. In early 2026, the company’s products passed the oil major’s required trial tests and audits, allowing Dalipal to become an unrestricted supplier and participate directly in Aramco procurement.
The Saudi manufacturing hub is expected to become operational in 2027 and forms part of Dalipal’s efforts to localize tubular and energy equipment production closer to its Middle Eastern customers.
Dalipal Holdings Limited is a China-based manufacturer specializing in high-end seamless steel pipes and Oil Country Tubular Goods (OCTG). Established in 1998, the company supplies casing, tubing, drill pipes and other specialized tubular products for the oil and gas and energy sectors. It exports to markets across the Middle East, Africa and the Americas and supplies major Chinese energy companies including CNPC, Sinopec and CNOOC.