Iranian Tube and Pipe production

Current situation and investment opportunities

Khashayar Tamadonktamadon@kalup.ir

Current situation – pipe lines

• First gas line was built in 1909130 km between Masjid suleyman and Abadan

• First oil transfer pipe line was 112km and built in 1914• First national gas line was built in 1955

1000 km between Abadan and Tehran• At the moment there are over 25000 km

gas lines and 14000 km of oil Pipelines in Iran• Currently there are over 120 factories producing a

wide range of line pipe equipment

Investment potentials- High ROI• Major investments in steel infrastructure will make Iran a steel exporting

country in the next 10 yrs• Declining oil and gas prices will reduce steel product prices in Iran given its

vast resources both in natural gas and oil reserves• Geographically suited for exporting finished goods• Large and growing domestic private sector with high demand for basic

infrastructure

General Investing opportunities

• Many untapped Natural gas and oil resources dueto delayed expansion plans due to Sanctions

• Currently many major expansionplans in South pars co.

• Due to lack of sufficient water supply there areVarious national water transfer and sweetenerProjects currently underway or planned

• At least 3000km of national gas / oilpipe line expansions per year are planned

• High usage of natural Gas among consumers and households

Investment opportunities in Pipes and Tubes

• Based on expansion plans there are Investment opportunities in• Transmission lines• Processing plants• Compressor stations

• Investment opportunities in pipes include: • LSAW products for major national pipelines• Seamless pipes• OCTG pipes

• Hollow sections and Tubes• Very underdeveloped• traditional construction culture

Kalup Co. Introduction

• Established in 1982

• 100% private and family owned group

• Mission: provide quality products at

premium prices to premium customers

• Focused on higher grade products in

the mid range sizes

• Provided over 60,000 KM

of mid size pipes over 3 decades

Corporate Advantages

• Nominal capacity of over 500.000 tons per year

• High quality oriented with brand recognition

• Strategically located in center of Iran for cost effective distribution of products

• Access to direct rail road to Mobarake Steel as well as all major Iranian ports for efficient distribution of imports and export material

• Trusted partner and supplier of most Oil/ Gas national and subsidiary companies as well as local and national water companies

Manufacturing advantages

• Production based on fulfilling all API, IPS and IGS requirements

• Full body ultrasonic on PIPE

• Production for Sour environment including all necessary testing and laboratory requirements

• Exported products to Dubai and middle east market based on needed standards such as ASTM A52

• Exported to Iraq, Turkmenistan, Afghanistan and Austria successfully meeting local standard requirements

Production lines -ERW

• ERW pipe line in city of Saveh

• 6”-14” API grade up to X60

• Pipe for sour gas environment with

complete laboratory and testing equipment

• ERW pipe line in city of Esfahan

• 6”-14” commercial grade pipe line

• Hollow sections and tubes of up to 300X300mm

• Total nominal capacity of ~300K Tons/year

Production lines- SAW

• 2 X Spiral lines in city of Esfahan

• 14”-32” water pipeline

• Total nominal capacity of

~40.000 Tons/ year

Production lines- Steel service center

• Industrial level Steel Service Center• Producing high level steel parts for

the construction sector and fabricators• Including all test, edge milling

and industrial stacking• Ready made for construction,

ship building and petrochemical needs

• Nominal capacity of

200.000 tons/ year

Other Group companies

• Light section mill

• Producing various angels,

• channels and other long sections

• Nominal capacity of 200,000 MT

• Trading arms and branches

• Austria

• Iran

• China

Products and industries

• Oils and Gas companies• API grade line pipes• Sour environment

• Water companies• Water pipelines• Water wells

• Construction• Hollow sections and tubes• Steel structure parts• Steel sections

• Telecom and power tower sites

THANK YOU1395 / 2016