His Excellency Sayyid Hilal bin Bader bin Ali Al-Busaidy, Wali of Sohar, officiated the Ground breaking ceremony marking the start of Construction for the Gulf International Pipe Industry (GIPI) Complex situated at phase 5 of the Sohar Industrial Estate.

The event was attended by a high level delegation consisting of their Excellencies, Sheikhs of Sohar and nearby villages, dignitaries representing POSCO / POSTEEL from Korea, Gulf Investment Corporation based in Kuwait and all other stakeholders ofGIPI.

The total investment in the GIPI Manufacturing facility is US$104 million of which US$80 Million Credit Facilities was secured on 11th November 2007 through a club deal between Qatar National Bank, Gulf International Bank, Bank Muscat and Bank Sohar with Gulf International Bank also acting as the structuring bank for the transaction.

In his welcoming address, Shaikh Abdullah bin Salim Al-Salmi ( Chairman of GIPI) expressed great satisfaction by GIPI Shareholders to witness this important milestone after 18 months of hard work by all those who contributed in the project at various levels to tie-up the shareholding structure, successfully arrange the project financing and award of major contracts. Mr. Al-Salmi thanked the Government of the Sultanate of Oman under the wise leadership of His Majesty Sultan Qaboos for provision of excellent infrastructure and Government support for Industrial projects like GIPI. Mr. Al-Salmi further stated that GIPI will help contribute to sustainable economic development in the Sultanate of Oman through the creation of employment opportunities and the diversification of its manufacturing industries.

GIPI will be the first ever high pressure carbon steel pipe and casing mill of 8”-24” in outside diameter with upto 1” in wall thickness to be operated in the GCC region. This Mill, capable of producing more than 250,000 tons per year of API grade products, will further enhance the Sultanate’s aspiration for reducing dependency on import of finished products needed to service its strategic Oil and Gas sectors. GIPI will additionally deliver other related services like internal and external coating for all pipe ranges offering unparalleled value proposition to its customers. GIPI, as a downstream venture, complements similar efforts by the Government towards promotion of local capabilities.

Speaking at the Ceremony, Mr. Hamdan Al-Shaqsy, the CEO of GIPI, stated that the Management, working in partnership with all its stakeholders, is determined to deliver the project and commence production by September 2009. Mr. Al-Shaqsy added that the plant shade will be completed before the end of 2008 during which the first Shipment, for the plant equipment, is also scheduled to be delivered at site in Sohar.

Mr. Al-Shaqsy affirmed GIPI’s commitment to work closely with the Ministry of Manpower and local officials to ensure that priority for job opportunities and development training, focused on the Steel industry, is given to the highly energetic and talented Omani youth. GIPI will employ at least 100 staff at full strength, but offshoot services to GIPI are also expected to generate additional employment opportunities.

The Shareholders of GIPI are Oman Investment Corporation (OIC) 30%, Golden Dunes Investments (GDI) 30%, Gulf Investment Corporation (GIC) based in Kuwait 20%, POSCO Steel Service and Sales Company based in Korea 15% and Arkan Group LLC 5%.