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Posteel Opens New Pipe Plant in Oman
Mar. 19, 2010 Posteel recently opened Gulf International Pipe Industry (GIPI), a new 250,000-tonne production facility specializing in API pipes based in Sohar, Oman.
Posteel has a 15% stake in GIPI, in which $112.6 million has been invested.
The construction of the plant began in November 2008. It had been in a test phase since January, preparing production lines for 24-in diameter pipes and coating facilities.
GIPI is expected to increase Oman’s self-sufficiency in steel pipes and gas/petroleum-related technologies. The new plant is designed to annually produce 250,000 tonnes of 1-in casing and tubing pipes, as well as pipeline pipes in the near future.
GIPI plans to sell 50,000 tonnes of steel pipe products this year—80% in the Omani market and 20% in Gulf Cooperation Council countries.
Posteel will supply 100,000 tonnes of hot-rolled coils annually to GIPI, which are needed to produce API pipes.
The opening ceremony featured more than 300 people including Posteel Senior Executive Vice President Chang In-hwan, Korean Ambassador to Oman Cho Sung-hwan, Omani government officials, and employees from Posteel and its partner companies.