Manufacturing of pipes and seamless pipes
Opportunity Brief
Pipes and tubes are long, hollow cylinders used to transport fluids (liquids or gases) They are also used in construction for scaffolding,
fences, and railings, as well as in other applications such as automobiles and heat exchangers This industry began in the early 19 th century,
immediately after Richard Trevithick built the first full size steam locomotive for railway use in the United Kingdom in 1804 This involved
creating a lengthwise weld between the ends of iron sheets after bending the sheet into a cylindrical shape This caused many defects,
such as making the pipe more susceptible to damage, rust, or even the inability to withstand the high pressures of fluids inside the pipe Therefore, seamless pipes were invented in the late 19th century. In 1885 seamless pipes were manufactured by the Mannesmann brothers Since then,
they have occupied a rominent position in the industry. This position has increased through their dominance in the petroleum and natural gas transportation industries, due to their ability to withstand high pressures and high temperatures, their resistance to corrosion, and their smooth
surfaces They also dominate precision industries such as cannons, weapons, spacecraft, and aircraft The reason for the high quality and price
of seamless pipes lies in their manufacturing method Molten metal is drawn into a mold in the desired shape, and then emerges in the desired
final form without the need for welding Therefore, seamless pipes are characterized by superior mechanical properties regardless of the
material from which they are manufactured The most common of these materials are steel and its alloys, stainless steel, copper, and titanium.
Final products:
- Steel pipes: Pipes and tubes for petroleum and natural gas transportation, power plants, the vehicle and transportation sector, the construction sector, heavy equipment, weapons and defense applications.
- Stainless steel pipes (resist rust): Hydraulic system pipes, medical device pipes, food
processing machinery parts, aerospace applications. - Copper pipes: Refrigeration and air conditioning, heat exchangers, shipbuilding, medical sterilizer pipes, industrial applicationsapplications.
- The billet is heated to pre melting temperatures 1200 1300 for steel) and then passed through a perforator to create an internal cavity without welding,
- The tube is passed between conical rollers that gradually reduce the diameter and give a uniform thickness, this process is called pilgerization.
- It is now passed through the Mannesmann process, reducing wall thickness and increasing tube length by means of rotating balls, providing high measurement accuracy It is molded onto a forming die to increase strength, accuracy, and improve surface finish It is used to produce high precision tubes, such as medical device tubes.
Investment Opportunity Drivers Global Perspectives
- he large and increasing demand in the local market is due to the diversity of areas of use for this product and the expansion in the manufacture of vehicles, machines and other uses that require this product.
- New petroleum discoveries increase the demand for components of the petroleum and natural gas industries.
- The annual growth rate in demand for seamless pipes reached 11 for some types of pipes, with an average annual increase of 7
during the period from 2019 to 2023. - This increase in global demand represents a double opportunity for Egypt, given the ease of access to its products abroad,
given the shortage of seamless pipe manufacturers in neighboring countries. - It is used in many other industries such as (high pressure testing devices in laboratories and maintenance centers, automotive feed industries, some diverse industrial applications, medical supplies, food industry equipment, construction and renewable energy sectors).
Local market
- So far, there are no local companies that produce seamless pipes, whether made of iron, stainless steel, or copper, nor are there any manufacturers of them made of any other materials such as titanium.
- Egypt’s imports of seamless pipes under various customs categories increased significantly between 2019 and 2023 estimated
at 163 million and 331 million, respectively This roughly corresponds to the size of the Egyptian market, given the lack of local
manufacturing of this product.
Investment opportunity enablers
- Egypt is considered the oldest country in the region in terms of iron, steel and non ferrous metals manufacturing plants,
which gives Egypt a technical advantage in terms of the workforce and accumulated experience that extends back to the
middle of the last century. - In the recent period, discoveries of natural gas and oil have increased at the local level, which increases the volume of local
use of this product, which in turn gives greater chances of success for the project of producing it in Egypt. - Helwan Iron and Steel Factory is one of the continent’s oldest iron and steel manufacturing plants, established more than
70 years ago Currently closed, its reopening to manufacture seamless pipes represents an excellent opportunity to revitalize the facility.
Nominated industrial areas
- Suze Canal Economic zone (SC Zone.
- 10 th of Ramadan industrial zone.
- Helwan Iron and Steel Factory.
Imports of the Arab Republic of Egypt
(in millions of dollars)
Customs items for opportunity
