Welspun Corp Ltd approved investments of up to ₹2,280 crore to expand its steel pipe manufacturing operations in the US and Jordan. Through these investments, the company aims to strengthen its global manufacturing footprint and capitalise on growing demand from oil and gas pipeline projects and large-scale infrastructure development.
Investment in US and Jordan Manufacturing Facilities
Welspun Corp will invest up to ₹1,093 crore to expand spiral pipe manufacturing capacity at its existing facility in Little Rock, Arkansas, US. Additionally, the company will invest approximately ₹1,188 crore, in partnership with Perma-Pipe, to establish pipe manufacturing and coating facilities in Jordan. The company announced these investments alongside its September-quarter financial results on Thursday. During the quarter, consolidated net profit increased 13% year-on-year to ₹499 crore, while revenue from operations grew 6% to ₹4,644 crore.
US Facility to Add 2.25 Lakh Tons of Capacity
The expansion at the Little Rock facility will add 2.25 lakh tons per annum of high-frequency submerged arc welded (HSAW) pipe manufacturing capacity. As reported by thehindubusinessline.com, the facility’s total annual capacity will increase from the existing 3.5 lakh tons to 5.75 lakh tonnes. Welspun Corp expects the additional capacity to become operational by March 2028. The company will finance the expansion through internal accruals.
Strong Demand Drives Expansion Plans
Welspun Corp cited its robust order book, strong market demand and favourable long-term growth prospects in the US oil and gas pipeline sector as key reasons behind the investment. Furthermore, the expansion will strengthen the company’s ability to serve growing pipeline infrastructure requirements while enhancing its manufacturing capabilities in key international markets.
