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 company said.
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 industry.
"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.