Welspun Corp. Ltd has entered into a strategic partnership with Saudi Aramco to establish a state-of-the-art Longitudinal Submerged Arc Welded (LSAW) line pipe manufacturing facility in Saudi Arabia.

This facility, situated in Dammam's Third Industrial City, is projected to have an impressive annual production capacity of 350,000 tonnes, with operations set to commence by mid-2026.

This venture marks a significant expansion of the longstanding collaboration between Welspun and Saudi Aramco, a partnership that has flourished over nearly two decades and seen Welspun contribute to various oil and gas pipeline projects within the Kingdom. The new plant will be meticulously equipped to furnish the future line pipe needs of Saudi Aramco’s ongoing and upcoming projects, including the transmission of oil, gas, hydrogen and developments in carbon capture, utilisation and storage (CCUS).

The establishment of this facility is a strategic move designed to bolster Saudi Aramco’s capacity to support its extensive and growing pipeline infrastructure across the region. Moreover, this initiative aligns seamlessly with Saudi Aramco’s broader strategy to localise industry through its In-Kingdom Total Value Add (iktva) programme. This programme aims to enhance the localisation of goods and services and increase local content within the supply chain, fostering greater collaboration and industrial growth within Saudi Arabia.

The significance of the iktva initiative was underscored last week when Saudi Aramco signed 145 agreements and memoranda of understanding (MoUs), collectively valued at approximately $9bn, during the first day of its iktva Forum & Exhibition 2025. The agreements and MoUs are expected to advance the localisation of goods and services in Saudi Arabia, boosting local content in the supply chain and fostering collaboration.

Oilfield and marine services are areas of obvious interest for Aramco, with its King Salman Energy Park (SPARK) home to various innovative JVs and the coastal Ras Al-Khair facility housing rig and shipbuilding, casting and forging, engine manufacturing and other related industrial ventures.

Likewise, Aramco has set up various corporate entities to drive industrialisation, including Arabian Rig Manufacturing (ARM), a JV with US-based NOV and Aramco, the Aramco Nabors Drilling Co. (SANAD) JV, International Maritime Industries (IMI) – a JV with Bahri, UAE-based Lamprell and Korea’s Hyundai Heavy Industries (HHI).