Northwest Pipe Co. is consolidating its two southern California facilities, located in Riverside and Adelanto, into one expanded facility in Adelanto.

"These two facilities are less than one hour apart and have been operated under common management for some time," said Brian W. Dunham, President and CEO of Northwest Pipe Co. "The Riverside facility has focused on smaller diameter pipe and projects while our Adelanto division has provided larger pipe for major systems for San Diego County, Metropolitan Water District, Los Angeles Department of Water and Power and others. We expect to serve all of our customers' needs more efficiently from this single, combined facility."

The company has acquired an additional 20 acres in Adelanto and is in the process of moving equipment from the Riverside facility. The new facility will operate on 100 acres and will include five separate manufacturing lines. It will be the largest steel pipe facility focused on water transmission projects in the United States with the capacity of producing pipe ranging from four to 156 inches in diameter. The facility is designed to provide complete piping requirements for complex projects throughout the southwest. Employment is expected to grow to approximately 300 employees in 2005, a significant increase over current employment. "We are very pleased that nearly all of our employees in Riverside are expected to stay with the Company. The combined operation should give them a high-quality work environment and continued opportunities to grow along with the company," said Dunham.

Northwest Pipe has signed an agreement to sell the Riverside facility to a real estate developer, The O'Donnell Group, Inc., for $12.5 million. The property is expected to be converted into a residential development. The sale will not be final until certain closing requirements are met.

Northwest Pipe Co. manufactures welded steel pipe in two business segments. Its Water Transmission Group is a leading supplier of large diameter, high-pressure, steel pipe products used primarily for water transmission in the United States and Canada. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. The company is headquartered in Portland, Ore., and operates ten manufacturing operations in the United States and Mexico.