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MFRI taps into Colombia with joint venture

Keywords: Tags  MFRI, Tayrona Steel Pipe, Perma-Pipe, pre-insulated pipe, joint venture, Colombia, Fati Elgendy, steel pipe casing and tubing

NEW YORK — MFRI Inc.’s Perma-Pipe subsidiary has signed a joint-venture agreement with Colombian pipe producer Tayrona Steel Pipe to manufacture pre-insulated pipe in the South American country.

The joint venture follows the signing of a "three-year, multimillion-dollar, blanket order" for the material with a major Latin American oil company, Niles, Ill.-based MFRI said.

Santa Marta, Colombia-based Tayrona will provide steel pipe, casing and tubing, and corrosion-coated line pipe for the joint venture.

"We are delighted to establish Perma-Pipe as the first pre-insulated pipe manufacturer in this important market," Perma-Pipe president Fati Elgendy said in a statement. "Santa Marta is well located in Colombia, within a short distance of Venezuela and enjoying logistical advantages to the Caribbean Islands."

Perma-Pipe will hold a 49-percent stake in the joint venture, which will initially serve the oil and gas markets in Colombia, Mexico, Venezuela, Ecuador and Peru, while Tayrona will hold a 51-percent stake.

The joint venture’s production facility will be based on Tayrona’s campus in the Santa Marta free-trade zone.

Production is expected to begin in late 2014 with the facility expected to be fully operational in early 2015.

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