The Board of directors of Welspun Corp Limited has approved an investment of approx. US$100 million by our wholly owned subsidiary Welspun Pipes Inc. for the strategic upgradation of the HFIW (High Frequency Induction Welding) Pipes manufacturing and coating capability in the USA for enriching its product portfolio. This will be funded through local debt and internal accruals. The investment will be spread over 18 months.

This investment will help us in expanding our leadership position in the Oil & Gas segment in the USA market by enriching our product portfolio with inclusion of pipe sizes upto 24" outside diameter and 0.750" wall thickness with grades upto x80 for a capacity of 350 KMTPA. We see very strong demand and future growth potential for this size range, which will also help us in further strengthening our position in the oil, liquids, gas and distribution market and at the same time will allow us to make a strong footprint in expanding hydrogen and carbon capture applications market in North America.

The outlook for line pipe market in the USA remains strong as it is likely to defend its position of being the largest LNG exporter in the world. We continue to see very active drilling activity in the Permian Basin, leading to strong demand for new gas pipelines for bringing the Permian gas to the Gulf Coast.