PaintSquare.com


The First Word in Protective & Marine Coatings

A Product of Technology Publishing / PaintSquare
JPCL | PaintSquare News | Durability + Design | Paint BidTracker

Paint and Coatings Industry News

Main News Page


Asian Pipe Maker Teams with Saudi Coating Giant

Wednesday, June 15, 2011

More items for Coating Application

Comment | More

A new Joint Venture will team up China’s largest pipe manufacturer and Saudi Arabia’s AHQ, which operates the third-largest coating factory in the world.
 
Panyu Chu Kong Steel Pipe Co. Ltd. signed an agreement June 13 with Abdel Hadi Abdullah Al Qahtani & Sons Co. (AHQ) to establish a JV company with a total capital of $106 million US.
 
AHQ will own 50% of the new company; the other half will be owned by Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited (Chu Kong Pipe), Panyu Chu Kong’s parent company and China’s largest manufacturer of longitudinal submerged arc welded pipe (LSAW).

550,000 Tons of Pipe

The venture will manufacture and sell LSAW steel pipe and Electric Resistance Welded (ERW) steel pipe. Pursuant to the agreement, the JV company will set up two mills in two phases: an LSAW plant designed to produce about 330,000 tons of pipe annually and an ERW plant designed to produce about 220,000 tons of pipe annually. 

 

 AHQ

AHQ built its Al-Qahtani Pipe Coating Terminal in 1954. Today, the company has three coating plants in Saudi Arabia.

Saudi-owned AHQ supplies materials, equipment and services to Saudi Aramco, Saudi Consolidated Electric Company, Saudi Basic Industries Corporation, Saline Water Conversion Corporation and many other government agencies, as well as the private sector.

AHQ operates the third largest coating factory in the world.
 
Filling a Market Gap

Chen Chang, chairman of Chu Kong Pipe and its subsidiaries (“the Group”), said the venture would be the first in the Saudi Aramco region to provide LSAW steel pipe locally, “therefore effectively filling a large gap in the requirements of the market.”

“2011 is a year that global infrastructure projects are picking up their pace of development, and the demand of international steel pipe market has been on the rise since the end of last year,” said Chang.

The JV will increase the Group's production capacity and market shares in Saudi Arabia and other neighboring countries, while creating an “enormous synergy effect,” Chang said.

Establishing regional production plants near customers and prospective clients will reduce delivery costs, and enable the company to leverage its current R&D capabilities, management and client base, he said.

“We are well positioned to excel in [the] steel pipe market, to expedite business performance, and create value for shareholders,” he said.

   

Tagged categories: Infrastructure; Mergers; Partnerships

Comment Join the Conversation:

Sign in to our community to add your comments.

Surface Prep Supply
Surface Prep Supply

Blast It! Coat It! We have you covered every step of the way. Supplier of:
• Abrasives
• Equipment
• Accessories
• Protective Coatings
888-331-7737(PREP)


Wasser High-Tech Coatings Inc.
Wasser Coatings Protect

some of the most important bridges in the country; learn about our NEPCOAT-approved system and our entire range of MCU & Polyurea coatings. 1-800-627-2968 www.wassercoatings.com


CESCO
USED EQUIPMENT SPECIALS

Jet Edge water blast cabinet 1995 Model 36-100, excellent condition
Sponge Jet 240L feed unit with a recycler unit
Hotsy Trailblazer
Schmidt pot, 6 ton with 4 outlets, TVII valves, 12V line with controls, Halo safety loading feature, 4 factory welded post for jumbo sack rack
Contact us: 888-772-3726
BlastandPaint.com


SAFE Systems, Inc.
Enduroguard -
The Tough Cable
for a Tough Industry.

Reduce maintenance costs and down time, increase job site safety with Enduroguard Cable. Available exclusively from SAFE Systems. UL listed, flexible, abrasion resistant and cut resistant.


DeHumidification Technologies
HUMIDITY PROBLEMS?

DH Tech has the most innovative and reliable equipment available to
control humidity efficiently
and effectively.
IT'S UNDER CONTROL!


Carboline Company
Hyrdrocarbon Fire & Jet Fire Protection

Pyroclad X1 is the latest breakthrough in epoxy based intumescent fireproofing technology


U.S. Zinc

With multiple locations, ample capacity and a proven safety record, U.S. Zinc offers supply security to customers around the globe. Helping the world work™

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker JPCL Europe

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
 

© Copyright 2000-2014, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com