Arabian Pipes Co. signs contract with Saudi Aramco valued at $42.6mn to supply steel pipes
In a stock market filing, Arabian Pipes Co. announced that it has secured a contract worth $42.6 mn from Saudi Aramco. The deal will see Arabian Pipes Co. supply steel pipes from it’s factory in Jubail Industrial City to Aramco over an 11 month period.
Prior to this, Arabian Pipes Co. had secured another deal in December 2019, which would see them supply steel to Aramco over an 18 month period from its Riyadh factory.
The financial impact of deal will only be known in the third and fourth quarter of 2020.
The company owns and operates two factories, the first plant in Riyadh with average capacity of 160 thousand ton per year of ERW pipes with sizes range from 6 to 20 inch and the second plant in Jubail industrial city with average capacity of 300 thousand ton per year of LSAW pipes with sizes range from 16 to 48 inch to reach a total average capacity to 460 thousand ton per year