Share price of Welspun Corp is in focus trading near its 52-week high on the circuit as the company, along with Perma-Pipe International Holdings, has signed a memorandum of understanding for the development of pipe manufacturing and advanced coatings in Jordan on September 1. This was disclosed on the exchanged post-market hours
The joint-venture agreement has been undertaken to establish pipe and coating platforms in Jordan and its neighboring regions.
Welspun Corp-Perma Pipe: Jordan project details
Under the scope of work, both companies and project developers are developing technical, commercial, financial, and regulatory requirements related to the project. This also includes facility design, manufacturing capacity, coating technologies, market requirements, and applicable approvals.
Details of the investment structure in the JV, ownership structure, capacity, and project timeline will be conveyed once the project’s definitive agreements are completed.
Both companies have signed an MoU with Jordan’s National Water Carrier Project and the Government of the Hashemite Kingdom of Jordan to support the development and operations of pipe manufacturing and advanced coating facilities in the country.
These facilities are aimed at serving major water, oil and gas, energy, and infrastructure projects in the country and its surrounding areas. The collaboration aims to create local manufacturing hubs that can support large-scale manufacturing programs and strengthen the country’s supply chain.
Welspun Corp-Perma Pipe: Support infrastructure requirements in regional markets
The partnership also intends to develop skilled technical capabilities in the country, and as per the exchange filing, over the longer course of time, it may support infrastructure and reconstruction projects in Syria, Lebanon, Iraq, and Gaza.
Future opportunities associated with the development and rerouting of regional and gas infrastructure towards the Port of Aqaba may also be aided via the project.
“The partnership is expected to bring together Welspun’s large-diameter steel pipe manufacturing capabilities and Perma-Pipe’s expertise in anti-corrosion coating systems designed to protect pipelines from corrosion and extend service life, engineered piping solutions and project execution expertise,” the company said in its exchange filing.
Welspun Corp share price
The company’s stock was down nearly 1% in Wednesday’s intraday trading session. Over the past one month, its share price has increased by more than 51%, while over the past six months, its stock has climbed by a whopping 226%