The plant will have a production capacity of 330,000 tonnes a year of pipes with diameters ranging between 24 and 56 inches and a wall thickness of up to 1.4 inches. Sadid has appointed German plant manufacturer SMS Meerto provide the equipment for the pipe mill, which includes a plate edge milling machine, a pipe forming press, a mechanical expander and a hydrostatic pipe tester. Selmersfrom the Netherlands will supply the equipment for the coating plant.

The local Hirbodanis the engineering, procurement and construction (EPC) contractor on the estimated Eur 100 million-200 million ($95 million-190 million) project. Civil works on the site are already under way.

The facility is located in the petrochemical special economic zone (petzone) in Bandar Imam.

The plant will produce special pipes to supply the local market, where demand is rising in the wake of the expansion of the national gas grid. Among the projects to be supplied by the plant is the planned 56-inch, 540-kilometre fourth Iranian gas trunkline (IGAT 4).

Sadid says financing for the project has been arranged through the local Bank Refah Kargaran.