East Pipes strategy underpins on maintain its competitive features by utilizing its manufacturing capacity, business development plans, and price competitiveness to be the preferred supplier in the region. Our strategy comprises the following significant pillars:
- The company preserves the company’s manufacturing features by investing in factories, operations, and personnel.
East Pipes seeks to foster a culture of technical excellence and invests heavily in its manufacturing capacity, which covers the following:
East Pipes regularly invests in its manufacturing capacity. Currently, it has extensive and integrated capabilities (including pipe manufacturing, Double jointing, and pipe coatings), which enables it to provide complete pipe solutions to customers. The company expanded in 2019 by increasing its production capacity from (350,000) metric tons to (500,000) metric tons annually. The company deals with leading OEMs and has installed the latest machinery in its facilities, such as digital X-rays and the latest welding system with automatic salient control. The company’s factories have been certified to several quality certificates such as (API 5L), (API Spec Q1), (ISO 9001:2015), (ISO 45001: 2018), (ISO 14001:2015), (ISO/IEC 17025:2017), which requires a very high degree of manufacturing capability and process.
In addition to plant and machinery, East Pipes has comprehensive production procedures that are regularly reviewed and audited to improve safety, productivity, and efficiency. Each function is well defined, documented, and well linked to the SAP ERP system designed and implemented based on extensive experience, where the knowledge gained is leveraged. Within the framework of production planning, the KPIs are well defined for each project and monitored on an ongoing basis, which leads to applying the highest standards in the piping sector indicators in terms of steel production yield, pipe coating material consumption, plant operation, and safety.
East Pipes has a highly qualified workforce in its fields. And the company places great importance on its employees, as it trains them regularly to enhance their skill levels and update their knowledge to keep pace with the latest engineering developments. At the same time, the company encourages all its employees to complete annual training courses as part of their skills development. Besides, the training programs are completed internally and through external service providers. Employees’ training is also monitored through the East Pipes human resources department, which provides programs according to the technical and functions needs.
- East Pipes provides clients with best-in-class piping solutions
The company continuously works with its customers to understand their requirements and provide them with the most appropriate high- quality pipe solutions. Hence, the company is certified in pipe production up to (API 5L X-80), which is a high-quality grade for transporting water, oil, and gas pipelines.
- Managing costs to achieve leading competitive prices:
The company works its costs and operating expenses carefully to maintain its high competitiveness in submitting bids for new requests, especially from government agencies and state-owned entities such as the “SWCC” and “Saudi Aramco.” The areas of cost management include the following:
a. Manufacturing efficiency:
The company aims to maintain the high productivity of raw materials by purchasing high-quality materials, maintaining and upgrading its factories, and monitoring manufacturing procedures. Thanks to the company’s possession of modern equipment, its adoption of effective manufacturing procedures, and its application of continuous audit and monitoring systems, the company has a raw material control that market standard, which gives the company a competitive advantage over other competitors.
The company benefits from the volume of its business in obtaining more competitive prices than the prices that some of its competitors.
c. Administrative Expenses:
The company closely monitors and manages its operating and administrative expenses to ensure efficiency, leading to higher profit margins, giving it flexibility and competitiveness in pricing new bids.
- Taking advantage of national procurement initiatives within the Kingdom to support the local market
The Kingdom’s government and state-owned entities have launched several initiatives towards purchasing from local manufacturing companies to promote local industries, such as local content programs and the program to enhance the total value added in the Kingdom. Local manufacturing companies such as East Pipes benefit from these programs, as customers in the Kingdom, allocate more of their purchases to local manufacturers. Therefore, East Pipes was able to consolidate its position as a leading local manufacturing company.
- Explore new markets wherever possible
East Pipes seeks to explore opportunities wherever possible. This enhances the company’s competitive ability in providing integrated solutions to customers and complying with the highest technical quality standards.