27 March 2007
MUSCAT -- Gulf International Pipe Industry (GIPI) is setting up a $100 million pipe and casing mill in Sohar. A shareholders' agreement was signed here yesterday for this state-of-the-art pipe and casing mill. The production capacity of the mill is expected to be 250,000 tonnes per year. GIPI said that it would be the first 24" ERW high-pressure steel pipe and casing mill to be operated in the AGCC, and is expected to go on stream by next year. The signing ceremony was held at Chedi Hotel under the auspices of Nasser bin Khamis Al Jashmi, undersecretary at the Ministry of Oil and Gas.
Representatives of the partners from Awtad, a local subsidiary of Al Ghaith Holdings based in UAE; Golden Dunes Investments representing local promoters; Gulf Investment Corporation; Posco Steel Services and Sales Company, a sales arm for Posco the world's third largest steel producer based in Korea; and Arqan Group a reputable local business entity signed the shareholders' agreement.
Gulf International Bank (GIB) will be supporting GIPI to raise the needed debt finance, with a UK based company Mclellan providing Independent Consultancy for the Lenders. Trowers & Hamlins were appointed as Legal Advisers for the project whilst HMR were appointed as Environmental consultants. GIPI mill will enhance the Sultanate's aspiration for reducing dependency on import of finished products needed to service its strategic oil and gas sectors. Developing this downstream venture in the Sultanate will complement similar efforts by the government towards promotion of local industries.
Commenting on similar lines, Nasser bin Khamis Al Jashmi, undersecretary at the Ministry of Oil and Gas said: "The ministry of oil and gas encourages such ventures because a large part of the spending of the Sultanate goes in importing such goods and services. Nasser said that nearly $500 million is spent on importing pipes and this new venture will reduce the dependency and will also have a multiplier effect on various other socio-economic aspects."
Hisham Abdulrazzaq Al Razzuqi, CEO of GIC said: "We are very pleased to increase our commitment to the expanding Omani economy through this new investment. We believe that the project will enhance employment opportunities and be part of a growing trend to expand the contribution of the manufacturing sector in Omani GDP and to support other complementary ventures." GIPI had signed a MoU with MillTech-Korea, who will be delivering the pipe mill on an EPC basis.
MUSCAT -- Gulf International Pipe Industry (GIPI) is setting up a $100 million pipe and casing mill in Sohar. A shareholders' agreement was signed here yesterday for this state-of-the-art pipe and casing mill. The production capacity of the mill is expected to be 250,000 tonnes per year. GIPI said that it would be the first 24" ERW high-pressure steel pipe and casing mill to be operated in the AGCC, and is expected to go on stream by next year. The signing ceremony was held at Chedi Hotel under the auspices of Nasser bin Khamis Al Jashmi, undersecretary at the Ministry of Oil and Gas.
Representatives of the partners from Awtad, a local subsidiary of Al Ghaith Holdings based in UAE; Golden Dunes Investments representing local promoters; Gulf Investment Corporation; Posco Steel Services and Sales Company, a sales arm for Posco the world's third largest steel producer based in Korea; and Arqan Group a reputable local business entity signed the shareholders' agreement.
Gulf International Bank (GIB) will be supporting GIPI to raise the needed debt finance, with a UK based company Mclellan providing Independent Consultancy for the Lenders. Trowers & Hamlins were appointed as Legal Advisers for the project whilst HMR were appointed as Environmental consultants. GIPI mill will enhance the Sultanate's aspiration for reducing dependency on import of finished products needed to service its strategic oil and gas sectors. Developing this downstream venture in the Sultanate will complement similar efforts by the government towards promotion of local industries.
Commenting on similar lines, Nasser bin Khamis Al Jashmi, undersecretary at the Ministry of Oil and Gas said: "The ministry of oil and gas encourages such ventures because a large part of the spending of the Sultanate goes in importing such goods and services. Nasser said that nearly $500 million is spent on importing pipes and this new venture will reduce the dependency and will also have a multiplier effect on various other socio-economic aspects."
Hisham Abdulrazzaq Al Razzuqi, CEO of GIC said: "We are very pleased to increase our commitment to the expanding Omani economy through this new investment. We believe that the project will enhance employment opportunities and be part of a growing trend to expand the contribution of the manufacturing sector in Omani GDP and to support other complementary ventures." GIPI had signed a MoU with MillTech-Korea, who will be delivering the pipe mill on an EPC basis.
© Times of Oman 2007
