A methodology for the numerical modelling of the JCO-E pipe manufacturing process is presented. The cold bending induced by the crimping of the plate edges, the JCO forming process, the subsequent welding process and the final expansion (E) of the line pipe, are simulated rigorously using finite element tools. This paper continues previous work of the authors [1], enhancing the constitutive model to allow for the description of anisotropic response of the steel plate in terms of yielding and proposing a more accurate finite element simulation of the welding process. The present model is applied on the fabrication of a 26-inch-diameter X65 line pipe, candidate for use in moderately deep-water pipeline applications, using the manufacturing parameters set by the pipe mill. Anisotropy of the plate is accounted for, using test results from coupons, extracted from the steel plate. The numerical predictions of the line pipe material properties are compared with test data from coupons extracted from the line pipe. The simulation of the manufacturing process enables the prediction of the mechanical response and the collapse pressure of the 26-inch-diameter pipe subjected to external pressure for various expansion levels.