Oil pipeline manufacturing major, Welspun Corp will invest about Rs 480 crore in expanding capacity at its US facility adding an additional 200 jobs, signaling the Mumbai-based company's intetion to cash in on tax sops offered by the US government on job creation.
Online PR News – 26-February-2012 – – MUMBAI: Oil pipeline manufacturing major, Welspun Corp will invest about $100 million (about Rs 480 crore) in expanding capacity at its US facility adding an additional 200 jobs, signaling the Mumbai-based company's intetion to cash in on tax sops offered by the US government on job creation. With this expansion, Welspun said its total investment in the plant in Arkansas, USA, will go up to $280 million since setting up the unit in April 2009, reports agency.
"Our US facility has cemented the firm's global reach in servicing some of the largest oil and gas companies in the world," said Welspun chairman BK Goenka. "We believe the new investment will pave the way for the company to continue on its path of being one of the most respected line-pipe companies in the world," he added.
Line pipes are used to transport oil and gas and also water from the point of production to user firms.
US President Barrack Obama recently proposed to establish a new minimum tax on foreign earnings that will discourage US companies from outsourcing their jobs to cheaper markets including India.
The maker of line pipes has been recruiting people every year. Welspun Corp US initially employed more than 300 people and a year later expanded by adding 230 jobs with an extra investment of $30 million. "Welspun invested in Arkansas when the national economy was in bad shape," Governor Mike Beebe said. "That faith in our workforce and our business community has paid off for both Welspun and Little Rock."
Located on 740 acres adjacent to the Port of Little Rock, Welspun's spiral pipe and coating facility has an annual production capacity of more than 350,000 tonnes pipe. Through the expansion, Welspun will expand its product line to include production of 6-inch to 20-inch ERW steel pipes.
Welspun supplies pipes for most projects including the world's deepest pipeline project in the Gulf of Mexico and the heaviest pipeline project in the Persian Gulf, highest LNG pipeline project in Peru and longest pipeline project from Canada to the US, the report said.
Welspun's plate, coil and pipe plants are located in Dahej and Anjar in Gujarat, Little Rock in the US and in Dammam in Saudi Arabia. The company recently built a spiral pipe mill in Mandya, Karnataka.
Welspun Corp Ltd. is of the largest manufacturers of Large Diameter Line Pipe companies in the world with a capacity of nearly 2.0mn MTPA. The Financial Times, UK rated WCL as the 2nd Largest Large Diameter Pipe Company in the world when its capacity stood at 1.0mn MTPA in 2008. WCL was also recognized as the ‘Emerging Company of the Year’ (Economic Times Corporate Excellence Awards) in 2008.
With a strong culture of ‘Engineering Excellence’, WCL takes pride in being a preferred supplier of Line Pipes in the world. The Company has supplied pipes for some of the most challenging projects and has a credible list of clients that is unmatched in the industry.
In the Gulf of Mexico, WCL is known as the Company which supplied pipes to the deepest pipeline project (Independence Trail project). In the United States and Canada, the Company has supplied the longest pipeline (Keystone Project from Canada to U.S.). In Peru, WCL has to its credit of supplying to the highest pipeline (Peru LNG) and in the Persian Gulf WCL supplied pipes for the heaviest pipeline (IGAT IV).
WCL currently offers a one stop solution in line pipes with a capacity to manufacture Longitudinal (LSAW), Spiral (HSAW) and HFERW / HFI (ERW) pipes. The company additionally offers coating, bending and double jointing facilities, thereby offering a 360 degree pipe solution to its customers.