Amiantit Wins Multi-Million Dollar Contracts in South America

30 May 2006

Amiantit Group subsidiary manufacturing companies Amitech Argentina and Amitech Brazil are supplying pipe systems for multi-million dollar water infrastructure projects and irrigation networks in their respective countries.

The Argentina order, valued at US$ 6 million, is for 53 kilometers of Flowtite glass reinforced polyester (GRP) pipes to transmit water from a treatment plant in the city of Trelew to Puerto Madryn on the Patagonian Coast. Once a small community founded by Welsh settlers, Puerto Madryn, is a sanctuary for maritime fauna, such as penguins, seals and whales, and has experienced a population explosion since has become a popular tourist destination for whale-watching. In addition, Amitech Argentina is currently supplying pipes to west Buenos Aires and to Neuquen Province. The company is well placed to supply pipes for water infrastructure projects in Santa Fe, La Pampa, Cordoba and Chaco regions and to export to neighboring countries. Total orders in hand at present add up to around US$ 13 million and this amount is expected to grow during the year.

Amitech Brazil has secured two orders. The first is for 14 kilometers of Flowtite GRP pipes and fittings urgently required for two water pipelines in neighboring Columbia. In order to meet the short deadline, Amitech Brazil will manufacture the pipes and the lamination will be done on site by Amiantit's Columbian Flowtite licensee, Flowtite Andercol. The contract calls for after sales support which will be shared by the two companies. The second order is for 1 kilometer of Flowtite GRP pipes required by International Paper, a leading paper and pulp manufacturer in Brazil, to transport very acidic and extreme alkaline liquids. To withstand these very aggressive effluents at temperatures of up to 70 degrees centigrade the pipes will have an isophtalic body resin and a vinylester lining. Amitech Brazil is currently supplying pipes to the state of Alagoas and to Indaiatuba municipality. The company is strategically positioned to supply pipes for projects in other regions of Brazil as well as to export to its neighbors. Orders currently on the books stand at approximately US$ 5.3 million and further orders are anticipated in the near future.

These orders represent a substantial increase in market share for Amiantit pipe systems in South America and Mexico, where the upsurge in economic growth is enabling governments, municipalities and the private sector to proceed with infrastructure development projects necessitated by population growth and industrial expansion.

The image shows Amiantit environment-friendly GRP pipes being laid to transport water to Puerto Madryn in Argentina.

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