Abakan contracts to build large-scale clad pipe facility in Brazil
MIAMI -- Abakan, a company specializing in advanced coatings and metal formulations, today announced it has entered into a memorandum of understanding for the construction of a manufacturing facility to suit large-scale clad pipe manufacture inside the Suape export processing zone in Pernambuco State, Brazil.
The facility will help meet the demand for corrosion-resistant clad pipe for use in Brazil’s oil production, where more than 80 percent of fields are highly sour. The large-scale, four-line clad pipe manufacturing plant will be capable of producing up to $200 million of clad products annually. Abakan develops, manufactures and markets advanced nanocomposite materials, fabricated metal products and engineered metal composites for applications across several industries, including oil and gas.
The decision to establish a plant in Brazil was driven by the requirements of Abakan's technology development partner, Petrobras, along with anticipated demand from other Brazilian energy and mining companies. With increased demand for clad pipe delivery systems in sour crude oil and gas formations around the world, the company says it anticipates it will be able to reach projects in markets including Brazil, West Africa and the Gulf of Mexico.
Abakan’s partner in this agreement, Cone, is an initiative of Conepar–Moura Dubeux Engineering shareholders with an infrastructure fund managed by the Caixa Econômica Federal, the largest government-owned bank in Latin America. Cone has formed a strategic alliance with FCL Builders, headquartered in Itasca, Ill., to bring its industrial construction expertise to this partnership.
Architectural drawings are finalized and permitting for the site has started; land preparation is slated to begin next month; and the foundation will be completed in July. Abakan plans to start the installation of its specialty equipment by December.
The construction of the Brazil facility represents the first step in Abakan's plan to build corrosion-resistant clad pipe manufacturing facilities globally. The company plans to establish similar four- to eight-line facilities in Indonesia, the Middle East and North America.