SeAH begins construction on stainless steel pipe plant in Saudi Arabia

SeAH Gulf Special Steel Industries (SGSI), a joint venture between South Korea's SeAH CSS and Saudi Arabian oil giant Aramco, has broken ground on a $230 million stainless seamless steel pipe plant in Saudi Arabia on Wednesday.

The facility, to be built at King Salman Energy Park, will be the country's first stainless steel seamless pipe plant.

SeAH CSS, a subsidiary of SeAH Holdings, said on Thursday that the new plant will have an annual capacity of 20,000 tons of stainless seamless steel pipes and tube products, set to begin production in the first half of 2025. The pipes will be supplied to Saudi Arabia's state-run oil company  Aramco.

SeAH plans to use the plant as a strategic hub for the Middle East market, positioning it as more than just a production corporation. SeAH has been preparing for the new facility since the establishment of SGSI in July of last year. 

Seamless steel pipes are known to have improved strength and resistance to pressure compared to traditional pipes with interlocking joints, and also have decreased potential for leakage or corrosion.

They are used in a variety of applications, including oil and gas pipelines, power generation, high-pressure boilers, and the construction of structural and mechanical components.

Write to Seo-Woo Jang at suwu@hankyung.com