Steel Pipes Demand to exceed 1.7 million tons in Kingdom

Riyadh, June 21, SPA -- The Managing Director of the Saudi STEEL PIPE
COMPANY (SP), Riyad Al-Rabee'a believes that the demand for steel
pipes in the Kingdom of Saudi Arabia exceeds 1.7 million tons per
year.

He noted that the specialized kinds of pipes are imported from
abroad to meet the Kingdom’S requirements at the gigantic oil
projects and for implementing expansion of water and electricity
networks.

In a statement to The Saudi Press Agency, he said the wheel of
development in the Kingdom has enabled the steel pipes industry to
attain a remarkable success.

SP, since its establishment in 1980, has been working to meet the
increasing demand for pipes through production in line with the best
international standards.

He pointed that arrangements are underway to establish a factory for
the production of pipes in cooperation with a German company and
Saudi investors at a total cost of about SR 485 million, and the
factory is expected to be on stream by 2012.

The Al-Jubail-based factory which will produce pipes with large
diameters will export to the gulf and regional markets in the Middle
East and North Africa.

It is expected to produce annually about 200,000 tons of pipes, he
noted.

Al-Rabee’a said the factory will produce pipes in line with
standards of the American Petroleum Institute, Shell, Saudi Aramco
and other international standards.

Al-Rabee’a said the SP is steadily working to meet the requirements
of the various sectors and to enhance its position as a pioneering
company in the manufacturing of pipes capable of bearing high
pressure and difficult circumstances.

--SPA
1533 LOCAL TIME GMT NNNN