India’s Jindal SAW Limited has firmed up investment plans worth $118 million to strengthen its steel pipes and tubes business in the Middle East, a company statement said on Tuesday, June 10.
The largest of the projects will be the setting up a 100 percent owned ‘step-down’ subsidiary in Abu Dhabi, UAE, to establish a plant to make seamless pipes with a capacity of 300,000 mt per year.
The plant will serve the oil and gas sector in the MENA region. The investment in this project is expected to be up to $105 million, with the project to be completed within three years.
In Saudi Arabia, Jindal SAW will invest in two joint ventures (JVs) through its subsidiary Jindal Saw Holdings FZE.
The first JV will be with Buhur for Investment Company LLC to set up a helically spiral welded (HSAW) pipe plant in which Jindal SAW will hold a 51 percent stake, investing up to $10 million, with the project estimated to be completed within two years.
The second Saudi joint venture is with RAX United Industrial Company for a ductile iron pipe manufacturing facility. This project also involves a 51 percent stake and a capital commitment of up to $3 million. It is expected to be completed within 12 to 18 months.
