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O-Tek Takes Control of the Brazilian Company Newsan

16 July 2009

The Colombian O-Tek, from the conglomerate Inversiones Mundial, has incorporated Newsan, a company from Brazil specialized in piping rehabilitation.

In the country since 2007, O-Tek is the controlling company of Amitech, largest Brazilian manufacturer of fibreglass reinforced plastic (FRP) pipes, a type widely used by basic sanitation, agriculture, energy and industrial segments. Within the upcoming months, Newsan shall change its corporate name to O-Tek Services Brazil.

According to Gonzalo Arias, Amitech’s director and O-Tek’s executive officer, such deal will help the company to become the best provider of solutions to the market of water conduction, sewage and industrial effluents. In January, O-Tek begun to represent CST Industries in Brazil, a North American company that manufactures screwed steel tanks usually used to store potable water. “Now, we have completed our portfolio with the pipe rehabilitation service characterized by the minimal impact of works, which is known as trenchless technologies”, he emphasizes. Over the next three years, O-Tek plans to take this new service to Latin American countries where it maintains industrial and trading operations.

In addition to rehabilitating pipes of different materials, especially from non-destructive methods – that is, without the need to open ditches in the street to perform the service – Newsan diagnoses pipe failures through several technologies, among them, closed-circuit TV. The company, established in 1997 by engineer Nuno Barbosa in Osasco (São Paulo), also provides cleaning, inspection and clearance services for water supply and sewage or effluent conveyance networks.

“Up until now, we have performed non-destructive repairs to approximately 80 km of pipes for public and private companies, such as Sabesp, Petrobras, Braskem and Nestlé”, says Barbosa. In the segment since 1980, his stay in the command of the rehabilitation engineering department was crucial for O-Tek to close the deal. “With the experience of Barbosa and the team, in addition to O-Tek’s structure, we will manage to take the pipe rehabilitation technology to hitherto unexplored markets”, says Arias. The forty people now hired by Newsan will be part of O-Tek’s staff.

For Arias, Newsan’s investment recovery shall come after three years, such is the synergy between the two companies. “By 2015, the rendering of services tends to represent 20% of O-Tek’s earnings throughout the region”, estimates the director.





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