SAUDI Preinsulated Pipes Industries (SPPI) is setting up a new facility which will not only boost its production capacity of preinsulated pipes but will also enable it to expand its product range.

The expansion, which will be operational in the third quarter of this year, will enable it to produce three preinsulated pipes of 60-inch diameter per hour, compared to six to eight per 12-hour shift with the existing plant.

“In addition, the new plant has the capability to produce two more products: steel pipe coated with fusion-bonded epoxy (FBE) and as well as steel pipe coated with FBE and wrapped with a polyethylene (PE) jacket,” says Saleh Alnamlah, general manager.

Also, storage and handling efficiency will improve with the new plant online. Likewise, delivery will also become more efficient with all raw materials being in-house and received on-time.

SPPI utilises the latest technology in the design and manufacture of preinsulated pipes, making it the first company in the GCC and the Middle East to use spray and injection applications. It also produces high-density polyethylene (HDPE) pipes with thin and thick (pressure pipe) walls, in sizes ranging from 10 mm to 1,200 mm in diameter. Other products manufactured by SPPI are three-layer polyethylene (3LPE) and FBE pipes for transportation in the oil and gas sectors.

In addition, it offers custom fabrication and pipe protection services including pipe cutting, grooving, threading, bevelling and welding to accommodate specific job requirements.

SPPI has been involved in a number of major projects in the kingdom. Some of the recent projects to which it has supplied its products include the Saudi Aramco district cooling scheme, completed at the end of last year under a SR27 million ($7.2 million) subcontract from SNC Lavalin (main contractor).

Also completed at the end of last year was an order worth SR10 million ($2.66 million) for the King Abdullah Financial District (KAFD) from Nesma (main contractor). Meanwhile, at the King Abdullah University for Science and Technology (Kaust), the company completed a SR33 million ($8.8 million) order from SBG-Saudi Oger-Nesma (main contractor) in 2009.

Some of its other prestigious projects include expansion of the Two Holy Mosques in Madinah and Makkah; Makkah drinking water project; King Abdul Aziz Economic City (KAEC); King Fahd International Airport (KFIA); King Abdul Aziz International Airport (KAIA); King Abdul Aziz University (KAAU); King Saud University (KSU); King Khaled University (KKU); and Al Imam University.

Commenting on business levels, Alnamlah says the global financial crisis did have a negative impact on the company. “Since our company is an international one, the financial downturn affected us both directly and indirectly because our global customers cut down on expenditure and decreased their investment budget. So, in order to maintain our reputation and ensure continuity, we minimised the cost on customers, thus creating a win-win situation,” he explains.
He says that although last year was not a good one for the company this year holds promise.

“SPPI is optimistic that 2012 will be much better than 2011 in spite of the stiff market competition due to the growing number of competitors being established in and around the kingdom and other GCC and Middle East countries,” he says.

Citing recent studies, he says that demand has been on the rise since last year with further projects and investments anticipated in the Saudi construction sector this year.

SPPI was established in 1981 with its head office and factory located at the Second Industrial City of Riyadh. A member of the Gulf Insulation Group (GIG) which is owned by Zamil Industrial Group, the company supplies material to the GCC and Middle East and North Africa (Mena) region. It has a distribution agreement with Al Jassar in Oman and is planning to have a similar agreement in place in Egypt for the distribution of SPPI products in the country. The production department is manned by 95 personnel.