In a surprising turn of events, East Pipes Integrated Company for Industry, a prominent steel pipe manufacturer headquartered in Dammam, Saudi Arabia, has agreed to terminate a significant supply contract with Aramco. Initially valued at $40.8 million, the contract was established for the supply of steel pipes intended for crucial projects within the kingdom.

This cancellation, requested by Aramco and disclosed to Tadawul, Saudi Arabia’s stock exchange, has piqued the interest of industry observers. However, it is reported that East Pipes will not face any adverse financial consequences as a result of this decision. The company had not factored this particular deal into its production schedule for the current fiscal year, demonstrating a strategic approach to mitigate potential impacts on its performance.