East Pipes plans new external steel pipe coating line to double capacity in Saudi Arabia

East Pipes Integrated Company for Industry has announced plans to establish a new external steel pipe coating line at its existing pipe coating facility located in the Second Industrial City of Dammam, Saudi Arabia.

The project will be implemented as an extension of the company’s current coating plant and is aimed at expanding external coating capabilities for steel pipes. With the addition of the new line, East Pipes intends to increase its nominal coating capacity from approximately 4 million square metres to around 8 million square metres of coated pipe surface per year.

According to the company, the capacity expansion is designed to address growing market demand, particularly from the oil, gas and water sectors, while strengthening East Pipes’ competitive position in the regional and international pipe coating market.

The Board of Directors approved the project on 15 January 2026. Construction and implementation are scheduled to begin in February 2026, with pilot and commercial production expected to commence in the first quarter of the 2027/2028 financial year. The pilot phase is planned to last approximately one month.

The total investment for the project is estimated at SAR 78.5 million. Financing will be provided through a combination of existing cash reserves, available bank credit facilities and additional financing programmes.

East Pipes expects the financial impact of the expansion to be reflected in its results starting from the first quarter of the 2027/2028 financial year. The company stated that it will provide further updates as key project milestones are reached.