JEDDAH – Global Pipe Company (GPC), the first manufacturer in the Middle East of line pipes up to 50.8 mm (2 inches) wall thickness, plans to ramp up production to 200,000 tons at its new state-of-the-art factory at Jubail Industrial City by the first quarter of 2014. The factory, which started commissioning in January 2013, is a joint venture between Erndtebrucker Eisenwerk (EEW) of Germany and its Saudi partners Saudi Steel Pipe Company (SSP), Ahmed Hamed Al Khonaini, and Pan Gulf Holding Company (PGH) with a total investment of more than SR660 million ($176 million). The sophisticated plant was set up with a view to manufacturing thick-walled steel pipes, targeting mainly the Saudi Arabian and GCC markets, which, until now, have had to import these products, says Ahmed Hamad Al Khonaini, managing director, GPC. “Our strategic partner EEW is one of the most experienced manufacturers of thick-walled pipe in the world using the very latest equipment and machinery, and the company benefits from having a wide range of agents and distributors all over the world.” He continues: “Our other partners are also experienced in either pipe manufacturing or pipe trading: SSP has been recognized as Saudi Arabia's premier manufacturer of welded steel pipe since its inception in 1980, while PGH is a provider of quality products and efficient services to the oil and gas and construction sectors in the kingdom.” Al Khonaini is one of the leading industrialists and businessmen in Saudi Arabia's Eastern Province, with more than three decades of experience in the oil and gas and petrochemical industries. Construction work on GPC's plant was completed in the last quarter of 2012 following which trial production took place in the first quarter of 2013. On March 11, 2013, GPC marked a milestone with the launch of first commercial production and delivery of 9.5-mm-thick longitudinal submerged-arc welded (LSAW) line pipe, 30 inches in diameter, for Al Samra Waste Water Treatment Plant in Jordan. “During the second quarter of 2013 we successfully gained approvals from the American Petroleum Institute (API). On November 25 our facility received Saudi Aramco's approval,” he said. GPC is expected to play a key role in import substitution as it will help meet Saudi Arabia's domestic demand for LSAW pipes that have up till now been imported. Moreover, customers can benefit from reduced lead times for these large-diameter pipes for higher efficiency, Al Khonaini added. “The local LSAW pipe sector relies heavily on demand from Saudi Aramco, which is constantly drilling and exploring new oil fields. So the demand for our products is ever present,” he said. – SG
