Welspun Corporation’s Saudi Arabia arm receives ₹512-crore order for supply of steel pipes

Welspun Corp Ltd on Tuesday announced that its associate company East Pipes Integrated Company for Industry (EPIC) has bagged an order worth approximately ₹512 crore in Saudi Arabia.

The company’s associate company in Saudi Arabia, East Pipes Integrated Company for Industry has signed a contract with Saline Water Conversion Corporation (SWCC) for the manufacture and supply of steel pipes. EPIC is a leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes in the country.

Saline Water Conversion Corporation is a government corporation which operates desalination plants as well as power stations in Saudi Arabia, and is the country’s second largest electrical provider.

SWCC has awarded a contract worth more than SAR 230 million in value to EPIC on March 24, 2024, for manufacturing steel pipes.

The contract duration spans over a period of 30 months, and the financial impact of the said project will be reflected in the company’s financial statements over the first quarter of FY 2024/ 2025, until the third quarter of FY 2026/2027, Welspun Corp said in a stock exchange filing.

The company’s associate company EPIC is engraved with fully integrated manufacturing facilities, a shining history of executing mega orders, along with quality as well as customer focused approach, which bolsters the company’s position in remaining well-placed so as to secure more projects in not only water but also the oil and gas sector in Saudi Arabia.

Last week, East Pipes Integrated Company for Industry signed a mutual agreement with the Saudi Arabian state-owned petroleum and natural gas giant Aramco to stop and cancel a contract worth SAR 153 million or nearly ₹339 crore.

Despite order win, Welspun Corporation shares closed 3.35% lower at ₹518 apiece on the NSE.