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UK firm wins contract for India-bound gas pipelines

UK-based E Wood, beat two Chinese rivals on price to win the major contract with Baoji Steel.

india Updated: Feb 23, 2006 11:29 IST

A British firm has won a key contract in China to supply specialist coatings for gas pipelines destined for the East-West gas pipeline project in India.

E Wood Ltd, manufacturer of high performance pipe coatings beat two Chinese rivals on price to win the major contract with Baoji Steel, one of the largest pipe companies in China.

Based in Northallerton, North Yorkshire, the company has signed a 717,000-pounds contract with Baoji Steel to supply specialist coatings for the first phase of the gas pipeline project.

E Wood hopes to clinch the work for the second and third phases of the project, which will see 3,500 km of gas pipeline manufactured in China before being sent to India.

Managing director Chris McDonnell told the local media: "The Chinese were favourites to win the contract to supply the pipe for the East-West gas pipeline in India. Baoji Steel then put the coatings work out to tender.

"We put in our bid against competition from two rival Chinese companies. We won the contract on price, quality and service, which indicates our strength in the overseas market."

McDonnell was delighted that his company had fended off rivals despite being so far away from China.

He said: "We all think about China in terms of low-cost manufacturing and yet we got this deal because of the price we could offer even though we have to ship the products 10,000 miles to China."

E Wood, which has a turnover of about 25 million pounds, supplies its gas pipe coating to countries around the world. The product is sprayed on pipes to protect them during transport, storage and construction. The coating also improves the efficiency of gas travelling through the pipes.

In 2005, the company had won a major contract to supply protective coating to line 4,200 km of pipes carrying natural gas across China.

First Published: Feb 23, 2006 11:29 IST