India’s steel pipe manufacturer Welspun Limited has terminated a contract for supply of steel pipes to Saudi oil major Aramco, industry sources said on Monday, March 25.
Welspun said that its Middle East arm, East Pipes Integrated Company, and Aramco have mutually terminated the $406 million contract signed in January for supply of steel pipes over a period of eight months, the sources said.
Welspun did not elaborate on the reason for terminating the supply contract, but maintained that it would not impact its overall operational performance, the sources said.
As the contract was not included in the company’s production schedules during the current fiscal year, the raw materials related to the contract have not been purchased yet and the cancellation does not affect operating plans during the period scheduled for implementation, East Pipes agreed to terminate the contract.