Jindal Saw To Invest $118 Million In Middle East Pipe Projects

Jindal Saw Ltd. Monday said its board has approved the incorporation of a step-down subsidiary in the United Arab Emirates for a cash consideration of $105 million. Within three years, the company will set up a seamless pipe manufacturing facility with a capacity of 300,000 tonnes per annum in Abu Dhabi, aimed at catering to the oil and gas sector across West Asia and North Africa.

The board also approved the incorporation of two new companies in Saudi Arabia through joint venture agreements. One is a helically-spiral-welded pipe project to be set up within two years in partnership with Buhur For Investment Company LLC. This project will be undertaken through a joint venture between Jindal Saw Holdings FZE and Buhur, with Jindal investing up to $10 million for a 51% stake.

The second project is for ductile iron pipes, expected to be developed within 12–18 months through a joint venture between Jindal Saw Holdings FZE and RAX United Industrial Company. Jindal will invest $3 million for a 51% stake in the venture.