India-based pipe manufacturer Welspun Gujarat Stahl Rohren Ltd. has announced that it will invest $100 million to build its first North American pipe plant in Little Rock, Arkansas.
The plant will be built on a 740-acre site next to the Little Rock Port Authority. Welspun Gujarat, which supplies mostly to oil companies, expects that once the Little Rock facility is operational, it will produce 300,000 net tons of tubular steel pipes annually, serving customers in the oil and gas industry. Production at the plant is expected to begin in spring 2008.
Welspun Gujarat's decision to build the plant in Little Rock follows the approval from the Arkansas Economic Development Commission of a $5 million guarantee on an industrial development bond for a Welspun plant. The company cited the talented workforce, optimum location, and good transportation facilities as reasons for choosing Little Rock.
The Welspun Group includes six companies, producing both pipes and home textiles, and has a presence in over 50 countries. Welspun Gujarat was established in 1995 to manufacture SAW pipes. The company manufactures Longitudinal Submerged Arc Welded Pipes (LSAW), Helical Submerged Arc Welded Pipes (HSAW) and Electric Resistant Welded Pipes (ERW) pipes from ½ an inch diameter to 100 inches in diameter, in varying qualities and grades, as high as X 80. Welspun Gujarat supplies to many major oil companies including ExxonMobil, Shell, and Chevron.