Shares of Welspun Corp — the world's second-largest manufacturer of large diameter pipes — rose as much as 4.5 percent on Monday after the company announced it had bagged an order for a supply of 1,256 km or 100,000 MT (approximately) of high-frequency induction welding pipes for a carbon capture pipeline project in the United States.
The stock was trading three percent up at Rs 254.9 on BSE at the time of writing.
"The pipes for this order will be produced from our Little Rock plant in the US, and the same will be executed in FY23‐24," the company said in an exchange filing.
"With this project, we would not only significantly contribute to reducing the CO2 emissions in the environment, but also it is a big leap forward for us in strategically meeting our environmental, social, and governance (ESG) goals, as set out towards a cleaner and greener planet," it added.
Companies like Chevron, DOW, Exxon Mobil, GAIL, and Qatar Petroleum feature among Welspun Corp's clientele.
Earlier, in a conversation with CNBC-TV18, Welspun's MD & CEO, Vipul Mathur, said he was bullish about the demand for oil and gas pipes for the next two years. "The demand for oil and gas transportation is still going to be there, the pipelines are still going to be required, and that is the play we will continue to enjoy," he said.
Mathur had also said he was optimistic about the demand for the company's foray into the Ductile Iron pipes business. The company forayed into the sector in August 2020.
Welspun Corp's order book is over a million tonnes, valued at $1.6 billion. This order book will get executed over the next 4-5 quarters.
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