The Board of Directors of East Pipes announced that, at its meeting held on January 15, 2026, it approved the establishment of a new external steel pipe coating line at the company’s pipe coating facility located in the Second Industrial City of Dammam. The total cost of the investment was disclosed as approximately SAR 78.5 million (USD 20.9 million).
In a statement published on Tadawul, the company noted that construction of the project is planned to begin in February 2026. The investment will be financed through the company’s available cash, along with bank loans and other financing programs.
Completion of the new line, as well as the start of trial production and commercial operations, is expected in the first quarter of the 2027–2028 fiscal year. The company stated that the financial impact of the investment is also expected to be reflected in its results starting from the same fiscal year, while the expansion aims to increase the plant’s current nominal annual production capacity from approximately 4 million square meters to 8 million square meters.
Meanwhile, East Pipes also approved the acquisition of strategic assets and material handling equipment worth SAR 33.6 million (USD 9.0 million) to enhance its logistics infrastructure and optimize operating costs. This investment will likewise be financed through the company’s available cash and banking facilities, with the transaction expected to be completed by March 31, 2026. The financial impact is anticipated to be reflected in the company’s results starting from the 2026–2027 fiscal year.
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