Saudi Steel Pipe Company has been forced to temporarily shut its large diameter pipe factory. It said that the Tadawul-listed business has closed its large diameter pipe manufacturing facility for around three weeks. This will allow crucial maintenance work to be carried out at the facility that manufactures materials used in the oil and gas sector.
In a statement on the Saudi Stock Exchange, Saudi Steel Pipe Company said the financial impact of temporarily halting production “cannot be determined now”. An indication as to how the shutdown will affect the company’s capital will be evident in the firm’s Q3 and Q4 financial results for 2018.
News of the shutdown came just weeks after the manufacturer reported an $11.1m (SAR41.8m) net loss in H1 2018.
An impairment loss of USD 5.6 million (SAR21m) for one of the company’s bending units was largely to blame for the double-digit loss in the first six months of the year.
The company claims to be the largest bending manufacturer of steel pipes in the Middle East, with three production lines producing galvanized pipes of unlimited thickness with a diameter of up to 64in.
Source : CONSTRUCTION WEEK ONLINE
Yaang Pipe Industry Co., Limited (www.yaang.com)