Perma-Pipe Inc., a Niles, Ill.-based manufacturer of pre-insulated piping systems for the oil and gas industry, announced that it will establish a new pipe manufacturing plant in Dammam, Saudi Arabia.
Perma-Pipe’s subsidiary, Perma-Pipe Middle East, will develop and operate the plant, in conjunction with its existing plant in the United Arab Emirates. The “detailed plant engineering and design” is underway, the company said.
The new manufacturing facility will serve the special requirements of the oil and gas industry as well as the rapidly growing market for district cooling networks in the Kingdom of Saudi Arabia, according to the company.
“We eagerly anticipate this major strategic initiative, which will address the largest market in the [Gulf Cooperation Council] countries,” said Fati Elgendy, president of Perma-Pipe. “Perma-Pipe Saudi Arabia will serve the KSA district heating and cooling and oil and gas markets in this important and rapidly growing economy. Furthermore, in conjunction with our facility in the United Arab Emirates, the company will be well-positioned to serve customers throughout the region.”
The company has received an industrial license and the required commercial registration and expects the plant to be fully operational in 2011.
“The facility is within 20 miles of ARAMCO and very close to Qatar, Kuwait and Bahrain,” said Avin Gidwani, president of Perma-Pipe Middle East. “[Perma-Pipe Saudi Arabia] fills in our Middle East expansion strategy.”
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