Niles, Illinois -- MFRI Inc.'s Perma-Pipe subsidiary opened its newest manufacturing facility for pre-insulated pipe systems on 3 April 2012, with the ribbon cutting for the Damman, Saudi Arabian plant performed by His Royal Highness Prince Muhammad bin Fahd bin Abdulaziz Al Saud, governor of the Eastern Province and His Excellency Dr Tawfig Al Rabiah, Minister of Commerce and Industry.
According to MRFI, the event, attended by over 500 guests, marked the beginning of production at "this world-class manufacturing facility, built to serve the growing Saudi Arabian market."
MFRI said the Saudi government has embarked on an ambitious, decade-long initiative to invest $1 trillion in infrastructure development and industrialisation of their country.
The new 80 000 sq. ft (7400 sq. m manufacturing facility is located on 11 acres (45 000 sq. m) in a key industrial area of Saudi Arabia's Eastern Province. It will serve the special requirements of the oil and gas industry as well as the rapidly growing market for district cooling networks in the Kingdom of Saudi Arabia, (KSA).
Perma-Pipe Saudi Arabia, (PPSA), will feature Perma-Pipe's Xtru-Therm automated spray polyurethane insulation and several jacketing systems including polyethylene, metal and fiberglass reinforced plastics offering a comprehensive product range. PPSA will also be equipped to custom manufacture pipe spools, steam systems and a complete range of pre-insulated fittings. The integrated, automated, high throughput operation is designed to handle pipe sizes from 2 inches (50 mm) up to 72 inches (1800 mm) in diameter.
"I am very pleased to see this major strategic initiative become a reality. I especially want to acknowledge the extraordinary efforts of Tomas Stein, managing director of Perma-Pipe Saudi Arabia and Avin Gidwani, president of Perma-Pipe Middle East, who along with their teams brought this facility to life," said said Fati Elgendy, President of Perma-Pipe, in a company statement.
"Our in-country investment will permit us to address the largest market in the six country Gulf Cooperation Council very effectively. Also, in conjunction with our facility in the United Arab Emirates, we are well positioned to serve customers throughout the region," added Elgendy.
"Even with the severe downturn in the UAE market which negatively impacted our results in 2011, I am very proud of our accomplishments in the Middle East since our start there seven years ago," commented David Unger, chairman and ceo of MFRI, Inc.
"Expanding our focus to the Saudi Arabian market in a rapid fashion fits well with the overall implementation of our business strategy at Perma-Pipe. We will continue to reach new markets by providing outstanding customer service and best in class products at competitive prices. This investment further supports our plan for continued growth in rapidly emerging markets," he added.