Welspun Corp to Enhance HFIW Pipe Production in the USA

Welspun Corp Limited has announced that its Board of Directors has approved a strategic investment of approximately US$ 100 million by its wholly owned subsidiary, Welspun Pipes Inc.

The company stated that this investment aims to upgrade the High-Frequency Induction Welding (HFIW) pipes manufacturing and coating capabilities in the USA, enhancing the company’s product portfolio. This capital expenditure will be funded through a combination of local debt and internal accruals and is expected to be completed over the next 18 months.

This strategic investment is a significant step in expanding Welspun Corp’s leadership in the oil and gas segment within the USA market. The upgraded facility will enable the production of pipes with sizes up to 24 inches in outside diameter and wall thicknesses up to 0.750 inches, with grades reaching up to x80. This enhancement will increase the production capacity to 350 Kilo Metric Tons Per Annum (KMTPA), allowing Welspun to meet the growing demand in the oil, liquids, gas, and distribution markets.

Moreover, this investment positions Welspun Corp to capitalise on emerging opportunities in the hydrogen and carbon capture applications market in North America. The company sees robust demand and significant future growth potential for these specific pipe sizes, which will further solidify its position in the industry.

The outlook for the line pipe market in the USA remains favourable, as the country is expected to maintain its status as the world’s largest LNG exporter. Additionally, the Permian Basin continues to witness active drilling activity, leading to a high demand for new gas pipelines to transport Permian gas to the Gulf Coast.

Through this strategic upgrade, Welspun Corp is well-positioned to strengthen its footprint in the USA and continue to be a key player in the global energy infrastructure sector.

About Welspun Corp Limited

Welspun Corp is amongst the largest manufacturers of large-diameter pipes in the world. The company is also engaged in the manufacturing of BIS-certified Steel Billets, Ductile Iron (DI) Pipes, TMT (Thermo-Mechanically Treated) Rebars, Stainless Steel Pipes, and Tubes and Bars.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.