Amiantit and SUBOR awarded US$31.5M contract to supply GRP pipes for irrigation network in Iran

July 31, 2007
Amiantit Saudi Arabia and its joint venture partner SUBOR of Turkey have been awarded a contract worth SR 118 million (US$ 31.5 million) for the supply of Flowtite GRP (Glass Reinforced Polyester) pipes for the Eyn-Khosh irrigation network which is part of Dasht-e-Abbas irrigation project, Iran. The project is of vital importance for the irrigation of a large agricultural area and is being partly funded by the Jeddah-based Islamic Development Bank and partly by the Government of the Islamic...

• Project funded by Jeddah-based Islamic Development Bank and Government of Islamic Republic of Iran

DAMMAM, Saudi Arabia, July 30, 2007 -- Amiantit Saudi Arabia and its joint venture partner SUBOR of Turkey have been awarded a contract worth SR 118 million (US$ 31.5 million) for the supply of Flowtite GRP (Glass Reinforced Polyester) pipes for the Eyn-Khosh irrigation network which is part of Dasht-e-Abbas irrigation project, Iran.

The project is of vital importance for the irrigation of a large agricultural area and is being partly funded by the Jeddah-based Islamic Development Bank and partly by the Government of the Islamic Republic of Iran.

"This is a major contract award for the Amiantit Group and we are very pleased that the supply of the pipes is being shared between our Saudi GRP manufacturing facility, Amiantit Fiberglass Industries Ltd. (AFIL) in Dammam, and our joint venture company SUBOR in Turkey," said Eng. Fareed Al-Khalawi, President & CEO of the Amiantit Group. "Similar cooperation between Amiantit Group companies is taking place throughout the world and reinforces the strength of our global network of 34 strategically located manufacturing facilities."

The export order, which is the biggest ever received by SUBOR Turkey since the Amiantit Group joint venture company began operations ten years ago, comprises the supply of 230 kms of GRP pipes, plus fittings, with diameters ranging from 400mm to 2200mm and pressure of 6 and 10 bars.

The Amiantit-Subor contract award accounts for around 50 percent of the total value of the Eyn Khosh irrigation network project, which amounts to approximately US$ 70 million for the supply and installation of the pipes, valves, and other project elements, which include testing and commissioning.

The first shipment of pipes and fittings will leave from Amiantit Fiberglass Industries Ltd., Dammam, in July 2007 and deliveries will continue until the end of November 2008. Completion date for the whole project is 36 months from the date of the contract award to the contractors.

"This order shows the strong presence of Amiantit in the region and particularly in Iran, which is considered a highly important market segment in our strategic planning," continued Eng. Fareed Al-Khalawi. "With the energy sector enjoying a prolonged boom, the whole region surrounding the Arabian Gulf, the Black Sea and the Caspian Sea is highly active in infrastructure development projects and the Amiantit Group is making a significant contribution to the increasing trade relations between the countries that make up this most prosperous part of the world."

GRP pipes and fittings are produced using the Flowtite manufacturing process, a technology exclusively owned by Amiantit, which use a continuous filament winding system to produce fibreglass reinforced pipes and fittings that are used for a wide range of water, sewage, industrial, agricultural and marine applications. Flowtite technology is also used to manufacture GRP corrosion resistant single and double wall tanks which are used for underground and above ground storage of liquids such as gasoline, aviation fuel, and petrochemicals.

Amiantit Flowtite GRP pipes are the preferred choice of project owners and contractors worldwide, who specify them because of their several cost effective features. GRP pipes are strong and durable, yet light in weight and easy to install, are adaptable to varying site conditions, and, above all, are corrosion-resistant, an environment-friendly feature which ensures minimal maintenance costs throughout their long service life.

With 34 production plants spread across the Middle East, India, North Africa, South Africa, Europe the USA, South America and China, of which more than half produce GRP pipes, the Amiantit Group is one of the world's biggest pipe manufacturers and the world leader in the research, development and ownership of pipe manufacturing technologies.

The Saudi Arabian Amiantit Company was established in 1968 at Dammam as a limited liability company and was converted into a joint stock company in 1994. It started with a paid-up share capital of SAR 4 million, which is currently standing at SAR 1.155 billion. Its shares are traded on the Saudi Stock Exchange. The prime activity of the company is to initiate and manage new industrial projects, and market its technologies and products. The company also monitors and controls the business of all the Amiantit Group subsidiaries through its corporate management office in Dammam, Saudi Arabia.

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