Industry Overview
Electric resistance welded (ERW) pipe is manufactured by cold-forming steel sheet into a cylindrical shape and joining its edges through electric resistance or induction heating and pressure, without welding filler material. The original low-frequency A.C. process was used from the 1920s until 1970, after which high-frequency ERW technology became predominant because it provided higher-quality welds. Low-frequency ERW pipes were found susceptible to selective seam corrosion, hook cracks, and inadequate seam bonding and are no longer used for new pipe manufacturing.
ERW steel pipes and tubes have widespread applications in engineering, water, oil and gas distribution, line pipes, fencing, scaffolding, agriculture, drinking-water supply, thermal power, deep-boring hand pumps, and telecom cable protection. They are manufactured in different wall thicknesses, diameters, and qualities to meet end-user requirements. Products include line precision pipes, tubular poles, electric poles, and lightweight galvanised pipes for sprinkler irrigation. Advances in welding technology have expanded the use of ERW pipes in the oil and gas sector, while demand from oil and gas, infrastructure, and automobile industries has supported increased production.
Cost Estimation
| Particular | Value |
|---|---|
| Plant Capacity | 100 MT/Day |
| Land & Building (10,000 sq.mt.) | Rs. 9.83 Cr |
| Plant & Machinery | Rs. 12.23 Cr |
| Working Capital for 2 Months | Rs. 30.28 Cr |
| Total Capital Investment | Rs. 52.97 Cr |
| Rate of Return | 54% |
| Break Even Point | 31% |
Content Index
- INTRODUCTION
- TYPES OF ERW PIPE
- (1) LOW-FREQUENCY-WELDED ERW (LF-ERW) PIPE
- (2) HIGH-FREQUENCY-WELDED ERW (HF-ERW) PIPE
- (3) DIRECT-CURRENT-WELDED ERW (DC-ERW) PIPE
- PHYSICAL PROPERTIES OF PIPING MATERIALS
- MALLEABILITY
- DUCTILITY
- BRITTLENESS
- ELASTICITY
- CONDUCTIVITY
- CHEMICAL RESISTANCE/RESISTANCE TO CORROSION
- PROPERTIES
- ADVANTAGES OF ERW PIPE
- USES AND APPLICATION
- USES
- APPLICATION
- B.I.S. SPECIFICATION
- PROCESS FLOW CHART
- MANUFACTURING PROCESS
- 1. UNCOILED, LEVELED AND WELDING OF STRIP
- 2. STRIPPING
- 3. LOOPING
- 4. EDGE TRIMMING
- 5. FORMING
- 6. WELDING
- 7. BEAD TRIMMING
- 8. SIZING
- 9. CUTTING
- 10. NORMALIZING
- 11. END FACING AND BEVELING
- 12. TESTING
- ULTRASONIC TESTING
- EDDY-CURRENT TESTING
- HYDROSTATIC TESTING
- MAGNETIC PARTICLE TESTING
- RADIOGRAPHIC (X-RAY) TESTING
- DYE-PENETRANT TEST
- 13. MARKING
- PLANT AND MACHINERY
- (1) UNCOILER
- (2) LEVELER
- PINCH ROLL:
- LEVELING FOLL:
- (3) SHEAR AND WELDER
- HIGH QUALITY WELDING SEAM
- 1. SWITCHGEAR RECTIFYING CABINET
- 2. INVERTER OUTPUT CABINET
- 3. CONNECTING OPTICAL FIBER
- 4. CIRCULATION SOFT WATER COOLING SYSTEM
- 5. CENTRAL OPERATION CONSOLE
- 6. MECHANICAL ADJUSTMENT DEVICE
- (4) ACCUMULATOR
- ACCUMULATOR
- (5) FORMING AND SIZING SECTION
- FORMING AND SIZING MILL
- MATURE TECHNOLOGY FOR ROLLER COMPATIBILITY
- OPTIMIZED FORMING
- EDGE BENDING
- W-FORMING ON FIRST STAND
- (5) HF SOLID STATE WELDER
- HIGH QUALITY WELDING SEAM
- 1. SWITCHGEAR RECTIFYING CABINET
- 2. INVERTER OUTPUT CABINET
- 3. CONNECTING OPTICAL FIBER
- 4. CIRCULATION SOFT WATER COOLING SYSTEM
- 5. CENTRAL OPERATION CONSOLE
- 6. MECHANICAL ADJUSTMENT DEVICE
- (6) ANNEALING FURNACE
- (7) FLYING SAW
- FLYING FRICTION SAW
- MAIN SPECIFICATION:
- FLYING SAW ALL DIGITAL CONTROL SYSTEM
- (8) FACING AND BEVELING MACHINE
- (10) STRAIGHTNER MACHINE
- (11) THREADING MACHINE
- THREADING MACHINE FEATURES:
- (12) HYDRAULIC TESTING MACHINE
- 1) FOR ERW TUBE AND SEAMLESS TUBE
- 2) FOR LARGER DIAMETER PIPE (HSAW AND LSAW PIPES)
- MARKET POSITION
- MARKET GROWTH
- PLANT LAYOUT
- PRINCIPLES OF PLANT LAYOUT
- STORAGE LAYOUT:
- EQUIPMENT LAYOUT:
- SAFETY:
- PLANT EXPANSION:
- FLOOR SPACE:
- UTILITIES SERVICING:
- BUILDING:
- MATERIAL-HANDLING EQUIPMENT:
- RAILROADS AND ROADS:
- MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
- PLANT LOCATION FACTORS
- PRIMARY FACTORS
- 1. RAW-MATERIAL SUPPLY:
- 2. MARKETS:
- 3. POWER AND FUEL SUPPLY:
- 4. WATER SUPPLY:
- 5. CLIMATE:
- SPECIFIC FACTORS
- 6. TRANSPORTATION:
- A. AVAILABILITY OF VARIOUS SERVICES AND PROJECTED RATES
- 7. WASTE DISPOSAL:
- 8. LABOR:
- 9. REGULATORY LAWS:
- 10. TAXES:
- 11. SITE CHARACTERISTICS:
- 12. COMMUNITY FACTORS:
- 13. VULNERABILITY TO WARTIME ATTACK:
- 14. FLOOD AND FIRE CONTROL:
- EXPLANATION OF TERMS USED IN THE PROJECT REPORT
- 1. DEPRECIATION:
- 2. FIXED ASSETS:
- 3. WORKING CAPITAL:
- 4. BREAK-EVEN POINT:
- 5. OTHER FIXED EXPENSES:
- 6. MARGIN MONEY:
- 7. TOTAL LOAD:
- 8. LAND AREA/MAN POWER RATIO:
- PROJECT IMPLEMENTATION SCHEDULES
- INTRODUCTION
- PROJECT HANDLING
- PROJECT SCHEDULING
- PROJECT CONSTRUCTION SCHEDULE
- TIME SCHEDULE
- SUPPLIERS OF STEEL PIPE
- SUPPLIERS OF RAW MATERIALS
- SUPPLIERS OF M.S STRIP COILS
- SUPPLIERS OF PACKING MATERIALS
- SUPPLIERS OF PICKLING CHEMICALS
- SUPPLIERS OF RESISTANCE WELDING ELECTRODE
- CHINA SUPPLIERS OF PIPE PLANT
- SUPPLIERS OF PLANT AND MACHINERY
- SUPPLIERS OF ERW PIPE AND TUBE PLANT
- SUPPLIERS OF HIGH FREQUENCY INDUCTION WELDER
- SUPPLIERS OF DG SETS
- SUPPLIERS OF EOT CRANES
- SUPPLIERS OF POWER TRANSFORMER
- SUPPLIERS OF ELECTRICAL PANEL
- SUPPLIERS OF ELECTRIC MOTOR
- SUPPLIERS OF COOLING TOWER
- SUPPLIERS OF EFFLUENT TREATMENT PLANT (ETP PLANT)
- SUPPLIERS OF AIR POLLUTION CONTROL EQUIPMENTS
- SUPPLIERS OF AIR CONDITIONING EQUIPMENTS
- SUPPLIERS OF AIR COMPRESSORS
- SUPPLIERS OF PLATFORM WEIGHING MACHINE
- SUPPLIERS OF MATERIAL HANDLING EQUIPMENTS
- SUPPLIERS OF FIRE FIGHTING EQUIPMENTS
- SUPPLIERS OF SHOT BLASTING MACHINE
- SUPPLIERS OF JIGS AND FIXTURE
- SUPPLIERS OF SUBMERSIBLE WATER PUMP
Appendix
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSESTS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5 YEARS)
Frequently Asked Questions
ERW pipe is a steel pipe manufactured by forming steel sheet or strip into a cylindrical shape and electrically welding the edges together. The process uses resistance or induction heating to generate the heat required for joining the edges, followed by mechanical pressure to form the weld. No welding filler material is used. The report describes several stages, including uncoiling and leveling, edge trimming, forming, welding, bead trimming, sizing, cutting, normalizing, end facing and beveling, testing, and marking.
The report identifies three main types: low-frequency-welded ERW, high-frequency-welded ERW, and direct-current-welded ERW pipes. Low-frequency ERW uses low-frequency alternating current and was used historically from the 1920s until 1970. High-frequency ERW subsequently became the preferred process because of improved weld quality and process control. Direct-current-welded ERW pipe was introduced around 1930 and involved individually welding cold-formed pipe sections rather than using the continuous process described for other ERW manufacturing methods.
ERW steel pipes are used across engineering, infrastructure, water, oil and gas, agriculture, power, and other industrial applications. The report specifically identifies water, oil and gas distribution, line pipes, fencing, scaffolding, agricultural applications, drinking-water supply, thermal power, deep-boring hand pumps, and telecom cable protection. Depending on application requirements, ERW pipes and tubes can be produced with different wall thicknesses, diameters, and qualities. The report also notes their use in tubular poles, electric poles, precision pipes, and sprinkler-irrigation applications.
High-frequency ERW technology is preferred because it provides better weld quality and improved process control. According to the report, most manufacturers of low-frequency ERW pipe either converted to high-frequency welding between about 1960 and 1970 or ceased operations. High-frequency welding was easier to control and maintain and produced weld zones with better resistance to brittle fracture. The report also explains that low-frequency ERW welds were associated with selective seam corrosion, hook cracks, and inadequate bonding, which led to the discontinuation of that process for new pipe manufacturing.
The report lists ultrasonic, eddy-current, hydrostatic, magnetic-particle, radiographic, and dye-penetrant testing methods for ERW pipe. These methods form part of the testing stage after manufacturing operations such as forming, welding, sizing, cutting, and end preparation. Different inspection methods can assess different aspects of pipe and weld quality. The report includes these testing methods in its manufacturing-process contents but does not provide detailed acceptance criteria or test parameters for each method.
An ERW pipe plant requires equipment covering material preparation, forming, high-frequency welding, sizing, cutting, finishing, testing, and handling. The report lists equipment such as an uncoiler, leveler, shear and welder, accumulator, forming and sizing section, HF solid-state welder, annealing furnace, flying saw, facing and beveling machine, straightener machine, threading machine, and hydraulic testing machine. It also identifies supporting systems including switchgear, inverter and optical-fiber connections, soft-water cooling, a central operation console, and mechanical adjustment devices.
The project report states a plant capacity of 100 MT/Day and a Total Capital Investment of Rs. 52.97 Cr. The reported cost estimation also lists Land & Building (10,000 sq.mt.) at Rs. 9.83 Cr, Plant & Machinery at Rs. 12.23 Cr, and Working Capital for 2 Months at Rs. 30.28 Cr. The report states a Rate of Return of 54% and a Break Even Point of 31%. These figures are reproduced exactly as provided in the project report and have not been recalculated or independently verified.
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