Jindal SAW to Invest $118 Million in Middle East Pipe Manufacturing Projects

India’s Jindal SAW Limited has decided to make a hefty $118 million investment to grow its steel pipes and tubes business throughout the Middle East, with big projects in the pipeline in the UAE and Saudi Arabia, the company affirmed in a statement on Tuesday.

The majority of the investment, up to $105 million, will be utilized in establishing a wholly owned subsidiary in Abu Dhabi, UAE. The facility, with an annual manufacturing capacity of 300,000 metric tonnes, will be producing seamless pipes largely for the MENA region’s oil and gas sector. The project will be fulfilled within three years.

In Saudi Arabia, Jindal SAW is investing in two joint ventures with its wholly owned subsidiary Jindal Saw Holdings FZE.

One JV with Buhur for Investment Company LLC is to establish a helically spiral welded (HSAW) pipe mill. Jindal SAW would take a 51% interest and invest up to $10 million. The mill is expected to be operational within two years.

The second Saudi undertaking is a joint venture with RAX United Industrial Company for the construction of a ductile iron pipe factory. Jindal SAW will once again own 51% with a suggested investment of $3 million. The project enjoys a shorter time of completion of 12 to 18 months.

These strategic investments represent a significant thrust by Jindal SAW into the Middle East’s critical infrastructure and energy sectors. The ventures are expected to enhance the global reach of the company and benefit from increasing regional demand for high-quality industrial pipes.

The Abu Dhabi facility, for instance, is set to be a major supplier to oil and gas customers in the region, while the Saudi businesses are behind water infrastructure and pipeline growth in the kingdom.