Saudi-based East Pipes Integrated Company for Industry has announced that it has obtained approval from the company's board of directors for the establishment of a new external steel pipe coating line in Dammam.

The move is aimed at doubling the current nominal production capacity at the plant located in the Second Industrial City from 4 million sq m to 8 million sq m per year, said East Pipes in its filing to Saudi bourse Tadawul.

Founded in 2010 at Dammam in the kingdom's Eastern Province, East Pipes has today become a major manufacturer of spiral steel pipes. It presently offers helical submerged arc welded (HSAW) pipes, used in transport, water, oil and gas and other sectors, to customers worldwide.

The new coating line is being set up at an investment of SAR78.5 million ($21 million), it stated. 

Work on the project will start next month and is due for completion by first quarter of the fiscal year 2027–2028. The entire project will be funded through its available cash, bank facilities and other financing programmes, said East Pipes in the bourse filing.

On the financial impact, the Saudi group said the project is expected to impact the company's results in financial year 2027–2028, it added.

In another development, East Pipes has announced that it has secured the go-ahead from the board for capital investment of  SAR 33.6 million in strategic material handling assets.

The move is aimed at developing the company’s logistical infrastructure and optimising the operating cost of the company.

The financial impact is likely to be reflected in the company’s results for FY 2026–2027.-TradeArabia News Service