Arabian Pipes Company’s Board of Directors approved, on December 24, the establishment of a new plant to manufacture pipe connections for drilling pipes at the company’s facility in Riyadh’s Second Industrial City. The project, with an estimated investment value of around SAR 30 million (USD 8 million), forms part of the company’s strategy to localize technology and increase local content.
The plant is planned to have an annual production capacity of 50,000 units. Construction is expected to commence in the first quarter of 2026, subject to obtaining the necessary regulatory approvals. Completion is targeted for the first quarter of 2027, followed by trial production in the same quarter, with commercial operations scheduled to begin in the second quarter of 2027.
In a statement to Tadawul, the company said the project is expected to have a positive impact on its financial statements once commercial production starts. The investment will be financed through the company’s own resources, along with additional financing options.
Arabian Pipes also highlighted that the project will enable the localization of pipe connection manufacturing technology, support the fulfillment of casing pipe supply contracts for oil and gas wells, meet domestic market demand, and enhance export opportunities. Contracts related to project execution will be awarded to qualified specialists and suppliers after obtaining the required approvals from the relevant authorities.
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