Essar Steel has received two sizeable orders from the Middle East and Africa for manufacturing of API (American Petroleum Institute) grade steel pipes worth Rs 400 crore (US$72 million). This takes the total order book of the pipe mill to approximately Rs 1000 crore (US$180 million) indicating strong order inflow for the company.

The first order in Africa is for the construction of 4,000 tonnes of offshore line pipe which will be used in a Chevron project. A customer from the Middle East placed its second order with the company for 45,000 tonnes of 48-inch high-grade coated pipes that are to be supplied in the coming quarter. This will facilitate the company in strengthening its position in the niche market segment worldwide.

Commenting on the recent order win, Dilip Oommen, MD & CEO, Essar Steel India said, "This is reflection of Essar Steel’s integrated capability to produce world class pipes. To cater to the wide range of pipe products manufactured through various routes, our Pipe mill has full-fledged facilities for inspection and testing to ensure production of high quality pipes including sour service. Our aim is to become a preferred supplier of quality steel to all our customers, domestically and globally."

Essar Steel’s pipe mill has the capability to manufacture 600,000 tonnes, comprising 275,000 tonnes per annum of API-grade HSAW (helical submerged arc welding) line pipes, ranging from diameters 16" to 110", thicknesses 6.4mm to 25.4mm in grades through and up to X-80 and 325,000 tonnes per annum of API-grade LSAW (longitudinal submerged arc welding) line pipes, ranging from diameters 16" to 60", thicknesses 6.4mm to 65mm in grades through and up to X-80. The facility is an amalgamation of best-in-class technologies including tube mill, welding technology, inspection technology and is fully automated with the least manpower requirement with respect to the prevailing industry norms.

API grades of steel pipes require a fine grain structure for maximum impact resistance – an important performance feature for line pipe applications, preventing any crack in the steel from propagating down the line. The company’s products has been accorded API certification besides recent approvals from SHELL GLOBAL, ENI, SAIPEM, OCCIDENTAL-QATAR and ECOPETROL,PACIFIC RUBILAES in Columbia within the last ten months, paving its way to cement its position in the highly demanding oil and natural gas industry.