CHICAGO MesoCoat Inc. expects to complete construction and equipment installation at its Ohio clad pipe manufacturing facility in December and begin commercial production in March after several months of trial runs.
"The Ohio facility would be one of the largest clad pipe manufacturing facilities in North America, and we have plans to further expand production capabilities," Robert Miller, chief executive officer of Miami-based parent company Abakan Inc., said in a statement Thursday.
The plant is expected to serve customers in the mineral processing, power generation, and oil and gas markets, including the shale gas production sector in and around Ohio, where corrosion-resistant products are in high demand, Miller said.
MesoCoat broke ground on the Euclid, Ohio, plant last year and originally said the plant would reach full-scale production in early 2012 (amm.com, April 6, 2011). That timeline was later pushed back, with the company saying earlier this year that it expected construction to be completed by the second quarter of 2012 (amm.com, March 20).
A low-interest, $1-million loan from the state of Ohios Innovation Ohio Loan Fund provided the funding necessary to complete the Ohio cladding plant, Abakan said.
Production capacity at the Ohio operation is forecast to be between 15.5 miles and 18.6 miles of clad pipe per year, generating revenue of between $60 million and $80 million, Abakan said. But the company cautioned that actual production likely would be lower at first because some output would be dedicated to qualifications and short-run orders before the plant hits full production in 2013 and 2014.
Abakan said it has planned four-line clad pipe production facilities in Canada, Brazil and the Middle East designed to produce 74.6 miles of clad pipe per year. The Ohio plant will have only one line, the company said.
In separate news, Abakan said it had filed to be listed on the Nasdaq Stock Market. "Nasdaq is the right marketplace for our shares to trade, given the focus on technology-based companies," Miller said in a statement.