Welspun Corp's unit and Saudi Aramco scrap $41 mln steel pipe contract

Scrapped deal: Steel pipes maker Welspun Corp said on Friday its associate firm, East Pipes Integrated Company for Industry, and Saudi Arabia's oil giant Aramco have mutually terminated a contract worth 3.39 billion rupees ($40.6 million).

Welspun's unit h bagged contract for manufacturing and supply of steel pipes for a duration of eight months in January.

deal represented 3% of total value of contracts announced by Aramco for Welspun in financial year 2023-24, which amounts to about 98 billion rupees.

Welspun did not disclose reason for cancellation of contract, but said it would not affect its operating plans.

company h in February posted a more than twelve-fold jump in its third-quarter consolidated profit, including earnings from its units, helped by strong demand for its pipes across sectors.

With Reuters Inputs