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Northwest Pipe Announces Singapore Project
09/24/2009 - Northwest Pipe subsidiary Northwest Pipe Asia subsidiary has begun producing pipe for the Marine Coastal Expressway project in Singapore.
Northwest Pipe Company announced that its Northwest Pipe Asia subsidiary has begun producing pipe for the Marine Coastal Expressway (MCE) project in Singapore. Northwest Pipe Asia is working as a subcontractor to deliver approximately 30,000 tons of structural piling to Samsung, the prime contractor on the project.
Northwest Pipe also announced that its casings project for the USEC American Centrifuge project has now been cancelled. The project had been pending as USEC attempted to finalize its financing. Northwest Pipe has now been notified by its customer, a contractor, that the project has been cancelled.
"Obviously, the news on the USEC project is disappointing," said Dunham. “However, Northwest Pipe is not at risk on this contract — we have been paid for all of our work to date.”
"Both of these projects have some impact on our near-term operations,” continued Dunham. “The Batam startup is later than we had expected and will not generate the Q3 revenues we had anticipated. The USEC work was mostly planned for 2010 and 2011 and we expect to replace it with other projects.
“We had expected to generate some revenue this year from this project and this will be more difficult to replace because of the shorter time frame," noted Dunham.
Northwest Pipe Asia is producing the pipe from a new facility located on the island of Batam, Indonesia, across the Singapore Straits from Singapore. The facility, which features a newly completed Spiral Weld Pipe Mill, is located on the property of DSAW, an Indonesian company, which is also producing structural piling for Samsung.
"We are looking forward to a successful project. This will be our first project built in Indonesia," said Brian W. Dunham, CEO of the company. "We are using our newest mill which was designed and built by our subsidiary company."
Northwest Pipe Asia has begun delivering pipe, with production expected to finish by the end of the second quarter of next year. The company is evaluating other opportunities to place this mill after this project is completed, including the option of keeping the mill in Indonesia.
Northwest Pipe Asia, a subsidiary of Northwest Pipe, was formed in 2009 and is headquartered in Singapore. its primary business is the design and manufacture of Spiral Weld Pipe Mills.
Northwest Pipe Co. manufactures welded steel pipe and other products in two business groups. Its Water Transmission Group is the leading supplier of large diameter, high-pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of applications. Headquartered in Vancouver, Wash., the company has eleven manufacturing facilities across the United States, in Mexico and in Indonesia.
