Sumitomo Metals to Improve World Line Pipe Supply Network

Sumitomo Metal Industries tries to establish optimum production supply network for large diameter welded steel pipe for line pipe with National Pipe Company (NPC) in Saudi Arabia, which is joint venture with Sumitomo Corporation and local companies. The firm improves the supply ability including higher valued products with high strength and performance through the better development.

Worldwide developers revise and postpone natural gas pipeline projects one after another under lower market price. Line pipe demand decreases along with the trend. However, the demand is expected to grow in longer term to meet higher energy demand when world population keeps growing and developing countries seek economy development.

Sumitomo Metals expects the energy demand would recover even with temporally adjustment. The firm expects the demand increases in areas with severer condition including cold weather and deep ocean areas. The firm tries to meet the demand for higher performance steel pipe through the better supply network.

Sumitomo Metals supplies high performance steel pipe from UOE mill with 500,000 tonnes of annual output capacity at Kashima works. The firm also utilizes NPC’s capacity, which can make 250,000 tonnes of spiral pipe and 180,000 tonnes of straight seam pipe, to expand the sales to oil companies in Middle East.