Saudi Arabia’s East Pipes Integrated Company for Industry has signed agreements worth about SAR 8.9 mln (USD 2.37 mln) with selected suppliers as part of its investment in strategic material handling assets aimed at enhancing its pipe manufacturing operations.
The company signed an agreement valued at approximately SAR 7.2 mln (USD 1.91 mln), excluding VAT, with Saudi Liebherr and another worth around SAR 1.73 mln (USD 0.46 mln), excluding VAT, with US-based Vacuworx to acquire advanced material handling equipment.
East Pipes said the investment will strengthen its operational capabilities by securing advanced and reliable equipment to support material handling activities and improve operational efficiency.
The agreements form part of the company’s previously announced SAR 33.6 mln investment programme to upgrade strategic material handling assets and logistics infrastructure, with the objective of improving productivity and reducing operating costs.
In March, East Pipes said completion of supplier agreements had been delayed due to geopolitical developments and disruptions to global supply chains. The company added that there are no additional costs associated with the latest agreements beyond those previously announced.
Founded in 2010, East Pipes operates a helical spiral arc welded (HSAW) pipe plant in Dammam with an annual capacity of 500,000 tons. The facility can produce pipes up to 18.2 meters long, with wall thicknesses of 6-25.4 mm, diameters of 20-100 inches, and grades up to API X80.
1 USD / 3.75 SAR