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Kallanish Kallanish

Knowledge matters Knowledge matters

September, 30th 2020

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MAY 11
13:55

SSP limits capacity utilisation on Dammam lockdown

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Saudi Steel Pipe (SSP) has reduced capacity utilisation to 30% following the imposition last week by Saudi authorities of a 24-hour lockdown on Dammam 2nd Industrial City.

The measure also prohibits the exit or entry of people but allows goods to be transported in and out of the zone. SSP says the reduced output will continue until further notice.

SSP saw revenue drop -37% on-year in the first quarter to SAR 122.3 million ($32.6m) and the firm slid to a SAR 17.8m net loss from a SAR 320,000 profit a year earlier (see Kallanish passim). Last month the firm already reduced production on account of measures imposed by Saudi Arabia to stop the spread of Covid-19.

Dammam-based SSP, which sold a 47.79% stake to Tenaris in January 2019, has a 360,000 tonnes/year high-frequency induction welded pipe production capacity. It also owns a 35% stake in Saudi large-diameter pipemaker Global Pipe Company.