SMS Meer in July 2002 won the contract to provide the equipment for the pipe mill, which includes a plate edge milling machine, pipe forming press, mechanical expander and hydrostatic pipe tester. Selmersof the Netherlands will supply the equipment for the coating plant. The engineering, procurement and construction (EPC) contractor on the estimated Eur 100 million-200 million ($108 million-216 million) project is the local Hirbodan.

The plant will have production capacity of 350,000 tonnes a year of pipes with 24-56-inch diameters, wall thicknesses up to 1.4 inches and lengths of up to 12.2 metres.

The output is earmarked for the local market, where demand is rising on the back of the expansion of the national gas grid. Among the projects to be supplied by the plant is the planned 540-kilometre-long, 56-inch-diameter fourth Iranian gas trunkline (IGAT 4).

Financing for the project has been arranged through the local Bank Refah Kargaran.