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PSL Middle East Subsidiary Receives Order Worth $45mn

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Announcement Corporate
Last Updated : Feb 05 2013 | 4:18 AM IST
PSL Limited, a global leader in manufacturing and coating of pipes for transporting hydrocarbon products, water products, and steel structural applications, and the largest manufacturer of high-grade large diameter Helical Submerged Arc Welded (HSAW) pipes in India, announced that its international subsidiary "� PSL FZE "� based in Sharjah, U.A.E., has received an order for steel pipes valued at US$ 45 million from M/s. Hanwa Co Ltd, of Japan, to be utilized for Nakheel Corporation's Palm Beach Project.

PSL FZE shall be supplying pre-coated piling pipes, totalling 60 km. in length and fabricated from special steel along with anti-corrosion coating, for the water home project at the Palm Beach Housing Complex of the leading developer Al Nakheel Properties. Al Nakheel is a Dubai World Company and one of the world's largest real estate developers, with a vast portfolio of various real estate projects including the flagship 3 man-made palm tree-shaped islands on the coast of Dubai. The pipes are to be supplied for the Palm Jebel-Ali project, involving Hanwa Co. Ltd.

The production against this order is expected to commence shortly, and is required to be completed within the next 12 months. Each pipe for this particular application shall be 24-25 metres in length, and such piping applications have a very large market potential within the rapidly developing real estate sector in the UAE. PSL's Sharjah facility will be fulfilling the entire requirement of the order, and is fully geared to meet this upcoming demand.

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PSL is confident that it is well equipped to cater to the upward trend in demand for steel pipes from various markets, as it maintains a direct manufacturing presence near energy & infrastructure centres via its UAE facility. This not only enables the Company to overcome recently-announced Indian export curb measures, but also positions the Company more effectively relative to other Indian pipe manufacturers, Turkish pipe companies, and Saudi Arabian pipe firms. This is of particular significance for PSL, as exports represent only 6 percent of the order book, thereby substantially mitigating any impact that export duties may have on performance.

The Company has always followed a strategy of having manufacturing facilities close to the location of consumption in India. It has followed the same tactic by having presence in UAE and in the U.S. which are major growth markets.

PSL: Project Order Release

PSL FZE commenced operations from its Sharjah-based facility in mid-2007, with a capacity of 75,000 tons/annum. The plant provides pipe supply and coating services for onshore and offshore applications within the United Arab Emirates, Saudi Arabia, Oman, Qatar, Kuwait, and other locations in the Middle-East.

About PSL Limited

PSL Limited (PSL) is the largest manufacturer of high-grade large diameter Helical Submerged Arc Welded (HSAW) pipes in India. The Company manufactures and supplies pipes certified to API (American Petroleum Institute) standards for oil, gas and water transmission as well as structural and piling applications for both onshore and offshore sector.

PSL is one of the largest pipe manufacturers in India with 12 pipe mills at multiple and strategically coast-based locations in Kandla, Chennai, Visakhapatnam, Ahmedabad, and Jaipur along with the recently commissioned Sharjah unit. The annual pipe manufacturing capacity of the Company now stands at 1,175,000 MT per year.

Other business segments that PSL caters to, include pipes coating, induction pipe bending and sacrificial anode manufacturing. PSL has over the years successfully demonstrated its ability to simultaneously manage multiple assignments in a qualitatively and timely manner, both within and outside the country.

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First Published: May 13 2008 | 12:00 AM IST

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