NEW YORK Abakan Inc. has
entered into a memorandum of understanding with Brazils
Cone SA to build a manufacturing facility in that
countrys northeastern Pernambuco state.
The facility will meet demand
for corrosion-resistant clad pipe to enable safe and efficient
oil production in Brazil, the Miami-based materials development
When complete, the large-scale,
four-line clad pipe plant will be capable of producing some
$200 million in clad products annually.
The decision to establish a
plant in Brazil was driven by requirements of Abakans
technology and development partner, Rio de Janeiro-based
Petróleo Brasileiro SA (Petrobras), along with
anticipated demand in the Brazilian energy and mining
"This plant will be one of the
worlds largest metallurgical clad pipe manufacturing
facilities, with the capability of quickly producing large
quantities of corrosion- and/or wear-resistant clad pipe,"
Abakan chief executive officer Robert Miller said.
"The increased demand in Latin
America and worldwide for clad pipe to deliver sour crude oil
and gas from new and expanded projects, such as the Brazilian
and West African pre-salt reserves and the Gulf of Mexico, has
us very excited about the growth potential for our clad pipe in
markets that can easily be reached from this northeastern
Brazil facility," he added.
Abakan plans to establish similar four- to eight-line
facilities in Indonesia, the Middle East and North America to
accommodate potential growth, the company said.