BL reported that Yash Birla group Zenith Birla Limited plans to set up a new pipe making facility with an investment of INR 250 crore to 300 crore. The plant will be located on the West Coast close to a port in Maharashtra or Gujarat and is scheduled to go on stream in 2009

The plant will be manufacturing ABOUT 200,000 tonnes of SAW pipes in diameter up to 24 inches, which are mainly used for oil and gas pipelines.

Mr MS Arora ED & CEO of Zenith Birla told Business Line that “The current trend for oil and gas distribution is towards pipeline transportation, as against rail or road movement, with more than 30 cross country pipeline projects coming up in the country. We see a huge demand coming up for large diameter SAW pipes. And this is why we have decided to set up a Greenfield plant.”

He added that “We are looking for land in Maharashtra and Gujarat. We require about 30 acres to 40 acres. In our estimate, construction work will be launched within six months. We have already started negotiations with equipment suppliers.”

Zenith Birla Limited currently, produces 120,000 tonnes of pipes from its existing plant at Khopoli near Mumbai, which has two lines of production. Zenith already has strong in the global market, chiefly in the US and West Asia, with about 60% of its turnover coming from exports.