Saudi Steel Pipe (SSP) Company is currently fulfilling two contracts it won in October last year, one for the supply of OCTG steel pipes worth SR168 million ($44.79 million) and the second for induction bending pipes worth SR6 million
Production for these two contracts will be completed in the second half of 2014.
Pipes for these contracts are being produced at the company’s factories in Dammam’s Second Industrial City in accordance with Saudi Aramco’s specifications and international standards. The raw material will be supplied locally from Saudi Iron and Steel Company (Hadeed).
SSP has reported that exports of its high frequency induction (HFI) welded pipes were 25 per cent of total sales for that type of pipe in 2013.
The company supplies HFI pipes in sizes ranging from half inch to 20 inches depending on project and application requirements.
The main overseas markets for HFI pipes are the Gulf states of Oman, the UAE and Kuwait as well as non-GCC Middle East markets including Egypt, Yemen and Lebanon.
The company added three sizes in the past four years –18 inches, 18-5/8 inches and 20 inches.
SSP is adding a new production line for sizes 2 to 8 inches which will enable it to produce thickness and specifications that have not been produced before. The new line will open up horizons and new markets for the company.
BENDING PIPES
In the high induction bending pipes category, Saudi Steel Pipe exports accounted for 60 per cent of total sales for the category. The size most in demand overseas is 36 inches. The Saudi market had a greater preference for sizes 6 inches and 56 inches.
The UAE is SSP’s main export market for high induction bending pipes. “We have installed a new machine which increases the capacity up to 64 inches outer diameter for a maximum thickness of 100 mm,” the spokesman for this pipe category said.
Sales of high induction bending pipes surged 25 per cent in 2013 over the previous year. “We expect to increase another 25 per cent in 2014. We don’t expect a strong increase in the export market,” the spokesman said.
Taking into consideration HFI and high induction bending pipes, SSP says HFI pipes generate more income than the other category. Production capacity of HFI pipes is 240,000 tonnes currently.
SSP is working on an external pipe coating terminal, which will enable the company to provide a full service to its customers. Work is also underway in the establishment of a threading and finishing line for OCTG pipes used in the casing of oil and gas wells from sizes 7 to 20 inches.
