Frost & Sullivan: A Surge in the Construction of Onshore and Offshore Oil and Gas Pipelines Drives Growth in the Global Welding Industry

LONDON, August 5, 2010 - The construction of onshore and offshore oil and gas pipelines is driving
growth in the welding equipment and consumables market. Growth is largely due
to high demand from major pipeline construction companies requiring welding
equipment, consumables, manufacturing automation, steel pipes, cables and
wiring, technology expertise and training, system design and integration, as
well as testing and optimisation services. Several regions in Asia Pacific,
North America and Latin America offer a plethora of opportunities for both
new and established welding companies.

    (Logo: photos.prnewswire.com/prnh/20081117/FSLOGO)
    (Logo: www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

New analysis from Frost & Sullivan
(www.industrialautomation.frost.com), Strategic Analysis of the Welding
Equipment and Consumables Market in the Global Pipeline Industry, finds that
the market earned revenues of $377.0 million in 2009 and estimates this to
reach $547.7 million in 2016. The markets covered in this research service
are onshore pipelines, offshore pipelines and cross-country pipelines.

"Pipeline transportation is far more advantageous than road and railway
transportation," says Frost & Sullivan Program Manager Abhishek Gokhale.
"Some of the key benefits that give pipeline transportation of oil and gas a
competitive edge are as follows: lower transportation costs, reduced transit
losses, less energy intensity, economies-of-scale, fewer disruptions of
safety and reliability, and environmental amicability."

It is expected that the construction of new pipelines will remain stable
over the next few years, sustained by both continual projects and those
commencing in 2010. Additionally, the Greenfield cross-country pipeline
projects are anticipated to drive long-term growth in this market.

However, despite high demand, the prices of welding equipment and
consumables are steadily being reduced to suit the budgets of engineering,
procurement and construction (EPC) contractors. Highly competitive markets,
such as Europe and the United States, are particularly encouraged to reduce
product prices.

"Major participants are constantly providing goods at lower prices to
seek more contracts, as EPC contractors are decreasing the budget allocation
for welding applications," explains Mr Gokhale.

Manufacturers should use resources efficiently, formulate cost-cutting
strategies and attempt to expand to low-cost manufacturing locations.
Additionally, they should target projects in developing regions.

If you are interested in receiving a complimentary Executive Summary of
this study, please send an e-mail to Joanna Lewandowska, Corporate
Communications, at joanna.lewandowska@frost.com, with your full name, company
name, and contact details.

Strategic Analysis of the Welding Equipment and Consumables Market in the
Global Pipeline Industry is part of the Industrial Automation & Process
Control Growth Partnership Services programme, which also includes the
following research: Strategic Analysis of the European Welding Consumables
Market, Strategic Analysis of Eastern European Pumps Market, Strategic
Analysis of European Manufacturing Execution Systems Market, World Human
Machine Interface Market, Strategic Analysis of Global Welding Equipment and
Consumables Market in Oil and Gas Pipeline Industry, and World Oil Free
Compressors Market, among others. All research services included in
subscriptions provide detailed market opportunities and industry trends that
have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best-in-class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the CEO and
the CEO's Growth Team with disciplined research and best-practice models to
drive the generation, evaluation, and implementation of powerful growth
strategies. Frost & Sullivan leverages over 45 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 40 offices on six continents. To join our Growth Partnership,
please visit www.frost.com.

      Strategic Analysis of the Welding Equipment and Consumables Market in
                     the Global Pipeline Industry
                               M552

    Contact:
    Joanna Lewandowska
    Corporate Communications - Europe
    P: +48-22-390-41-46
    E: joanna.lewandowska@frost.com

www.frost.com

Joanna Lewandowska, Corporate Communications - Europe, Frost & Sullivan, +48-22-390-41-46, joanna.lewandowska at frost.com