South Korean steel giant POSCO's subsidiary POSTEEL has announced that it has opened a new pipe plant in Sohar, Oman specializing in API pipes. POSTEEL has a 15 percent stake and a $112.6 million investment in the new plant called Gulf International Pipe Industry (GIPI).
According to a POSCO press release, GIPI was commissioned on March 10 in the presence of POSTEEL senior executive vice president Chang In-hwan, South Korean ambassador to Oman Cho Sung-hwan, Omani government officials and POSTEEL and partner companies' employees.
The construction of the plant began in November 2008 and it had been in test phase since January, preparing production lines for pipes with 64 cm diameter and coating facilities.
The new plant is designed to annually produce 250,000 mt of 2.5 cm casing and tubing pipes and expected to manufacture pipeline pipes in the near future.
GIPI plans to sell 50,000 mt of steel pipe products this year, corresponding to 80 percent in the Omani market and 20 percent in Gulf Cooperation Council countries. POSTEEL will supply 100,000 mt of hot rolled coils annually to GIPI.