DAMMAM-BASED Saudi Steel Pipe (SSP) Company is currently completing two key contracts for the supply of pipes to Saudi Aramco, worth a total of SR174 million ($46.4 million), which it secured October last year.
These include the supply of OCTG (oil country tubular goods) steel pipes worth SR168 million ($44.79 million) and the second for induction bending pipes worth SR6 million ($1.6 million). 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 is being sourced locally from Saudi Iron and Steel Company (Hadeed).
SSP is a leading Saudi manufacturer of welded steel pipes. Established in 1980, SSP is claimed to be the first manufacturer of steel pipes in Saudi Arabia and the largest producer of welded steel pipes manufactured by high-frequency induction (HFI) welding to serve multiple uses that meet the needs of the oil and gas, water and construction sectors in the region and other markets.
The company currently has an annual production capacity of 240,000 tonnes of steel pipes, which are produced on four production lines, in sizes ranging from 1/2 to 20 inches. It also owns a factory for hot induction bending pipes which is considered the largest in the area, where the hot induction bends are produced in various diameters and thicknesses.
The Saudi company currently has a range of expansion plans under way which will boost its capacity to 340,000 tonnes per year.
The firm is adding a new production line for 2 to 8-inch sizes which will enable it to produce thicknesses and specifications that have not been produced before. The new line is expected to open up new markets for the company.
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 under way on 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.
SSP reports that exports accounted for 25 per cent of its total sales of HFI welded pipes in 2013, with the main overseas markets being Oman, the UAE and Kuwait as well as non-GCC Middle East markets including Egypt, Yemen and Lebanon. The company has added three sizes in the past four years –18 inches, 18-5/8 inches and 20 inches.
SSP’s exports of high induction bending pipes account for 60 per cent of its total sales for the category, with the 360-inch being most in demand overseas. The Saudi market had a greater preference for the 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,” says a spokesman for the company.
Sales of high induction bending pipes surged 25 per cent in 2013 over the previous year and the company expects to see a similar growth this year, he adds.
The company also owns a broad base of clients in the field of building construction such as fence, scaffolding, fire-fighting systems, lighting poles and traffic light manufacturers.