East Pipes signs SAR 497mln Steel Pipes Contract with SWCC for water desalination

East Pipes Integrated Company for Industry (“East Pipes” or “the Company”), a leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes, has signed a project with the Saline Water Conversion Corporation (SWCC) amounting to SAR 497 million approximately including VAT to supply and deliver steel pipes for Water Transmission System.

The project was awarded on 12 January 2022 for a duration of 12 months, and the financial impact of the deal will reflect in East Pipes’ financials in 2022/2023.

 Mohammed Al Shaheen, Chief Executive Officer at East Pipes said:

“We are delighted to have entered into a new agreement with our long-standing partner SWCC to supply pipes for Water Transmission System. As a manufacturer of choice in Saudi Arabia, we are committed to working with key local players to contribute to Vision 2030 as well as Saudi’s transformation journey. With a rising population, economic growth, and urbanization, Saudi Arabia has significant market potential, and we stand in a pole position to capitalize on national initiatives such as the expansion of water pipelines across the Kingdom, including projects that were delayed by the pandemic and are now coming on stream.”

Ali Al Makrami, Vice President – Commercial at East Pipes said:

“SWCC has been a major client for several years now, and from Shoaibah, Rabigh and Yanbu to Jubail, Ras Al Khair, and Taif, we have formed an integral part of their water transfer systems. Our collaboration on yet another project is a testament to our track record in project execution and delivery, and also our leading position as the supplier of choice in the market. As Saudi Arabia continues to witness strong growth opportunities and ongoing developments in infrastructure, we look forward to working together on more projects in the future.”      

The Water Transmission System is expected to be completed by 2023. It is owned and managed by SWCC, which is responsible for developing and operating power and desalination plants and supplying various regions in the Kingdom with desalinated water.

The demand for HSAW pipes is expected to be strong in the post-pandemic landscape and rise over the next 5 years. National initiatives in both the water and oil & gas sectors, including those under Vision 2030, present East Pipes with a robust outlook for winning projects. Between FY19 and FY21, the Company was able to produce and deliver more than 1 million tons of pipeline over almost 30 months.

About East Pipes:

Established in 2010, East Pipes Integrated Company for Industry (East Pipes) is one of the leading manufacturers of Helical Spiral Arc Welded (HSAW) pipes in Saudi Arabia, which are used in critical infrastructure sectors, predominantly water and oil & gas applications. Thanks to its state-of-the-art manufacturing capabilities and fully-integrated business model, which includes a double joining plant and coating mill, the Company is capable of producing more than 500,000 metric tons of spiral pipes per annum, making it one of the largest integrated manufacturer of spiral pipes in the region, with a market share of over 50% in Saudi Arabia.