Welspun Corp Limited's associate company East Pipes Integrated Company for Industry (EPIC), Saudi Arabia's leading manufacturer of HSAW Pipes announced the mutual agreement with Aramco to stop and cancel approx. Rs 339 crore contract.

This development has no impact on EPIC due to as the contract was not included in the EPIC's production schedules during the current fiscal year. According to the EPIC's plans, the raw materials related to the contract have not been purchased yet. Also, the cancellation does not affect the operating plans during the period scheduled for implementation.

EPIC's substantial order backlog is mainly linked to ongoing gas and water transmission projects. The contract represents 6% of the total awards by Saudi Aramco, valued at approx. Rs 6,000 crore, and just 3% of the total value of contracts announced during the current fiscal year (FY2023-2024), which amounts to approx. Rs 9,800 crore.

“We are quite optimistic about the future prospects of our associate company EPIC, which are further supported by Aramco's diversification of its energy mix, as well as the increasing demand for water transmission lines to support initiatives aimed at increasing water reserves across the Kingdom of Saudi Arabia, as well as other projects and programs such as NEOM, Green Riyadh Project, and other targeted projects,” the company said in a statement.