The investment aims to enhance Welspun’s product portfolio by incorporating larger pipe sizes up to 24 inches in outside diameter and 0.750 inches in wall thickness. The capex will further strengthen the company’s presence in the global oil, liquids, gas and distribution markets.
Sep 16, 2024
The Board of Directors at Welspun Corp Limited (WCL) have approved an investment of around USD 100 million to upgrade its high-frequency induction welding (HFIW) pipe manufacturing and coating capabilities of its wholly-owned subsidiary, Welspun Pipes Inc., in the United States.
As per an exchange filing, the investment by Welspun Pipes Inc. will be spread over the 18 months and financed through local debt and internal accruals.
With the new investment, the company aims to enhance its product portfolio by incorporating larger pipe sizes up to 24 inches of outside diameter and 0.750 inches in wall thickness.
The decision will further bolster Welspun’s leadership position in the oil & gas segment in the United States, and strengthen its presence in the global oil, liquids, gas and distribution markets. The upgraded facilities will further enable the company to tap into the growing hydrogen and carbon capture applications market in North America, it added.
Also Read: Indian Hume Pipe Secures Order Worth INR 859 Crore
All in all, the U.S. line pipe market outlook is strong, thanks to increased drilling in the Permian Basin. This surge is fueling demand for new gas pipelines to transport Permian gas to the Gulf Coast.
