Advanced Drainage Systems Inc. (ADS) has announced several growth initiatives.
The company has entered into a joint venture agreement with Tigre S. A. (Tigre) for the South American market. Tigre is the premier manufacturer of PVC pipe and fittings in Latin America. In North American, ADS’ expansion efforts will generate the opening of two new state-of-the-art manufacturing facilities located in Canada, plus the purchase of Century Plastics Inc. of Minnesota.
"In spite of the recent economic environment, we have experienced solid growth as the civil construction industry has embraced the substantial features and benefits of our N-12 and N-12 HP pipe, fittings and structures,” said Joseph A. Chlapaty, chairman and chief executive officer of ADS. “In the past year, N-12 pipe from ADS has received approval from Florida Department of Transportation for a 100-year service life designation. More recently, ADS has also entered into agreements to market FLEXSTORMTM inlet filters and BaySaver Technologies storm water treatment units. These additions truly reflect our commitment and enthusiasm to grow the industry.”
Creating a new company called Tuberias Tigre-ADS, Limitada will combine ADS corrugated pipe and Tigre’s mining, solid wall pipe to expand sales of both products in South America. The financial arrangements of the new joint venture were not disclosed. The two existing plants owned by ADS in Lampa and Antofagasta, Chile, will continue operation and be transitioned to Tuberias Tigre-ADS Limitada following the joint venture closing. Products manufactured by the new venture will include corrugated high-density polyethylene (HDPE) pipe up to 48 in. in diameter. A solid wall pipe offering up to 24 in. is scheduled to be available in the third quarter of 2009.
ADS also announced plans to open two new manufacturing facilities in Canada, one in Ontario and one in Quebec. “We are making this significant investment in these two plants to capitalize on the growth opportunities we see in Canada,” said Chlapaty. “We realize that to be considered a major player in the drainage pipe business, we need to be producing our pipe locally, and these two plants are proof that we are serious about being a Canadian producer of HDPE pipe. The facility in central Ontario is strategically located and will serve both the agriculture and storm sewer segments of our business.”
Both plants will produce the full line of single- and dual-wall corrugated HDPE pipe. ADS will operate its internal fleet of dedicated trucks to service both rural and metropolitan areas. Both facilities are scheduled to open this summer and will immediately expedite job site delivery time. There will also be more ADS area engineers on-site to assist project designers and contractors coordinating with design engineering and customer support departments.
ADS also announced that it has reached agreement to acquire the assets of Century Plastics Inc. Century manufactures corrugated HDPE plastic pipe used mainly for agricultural drainage systems.
“Century has a very strong and loyal employee and customer base,” said Chlapaty. “Purchasing Century will give ADS a turnkey operation that includes manufacturing, local inventory, delivery capability and most importantly, Century’s dedicated people who know the area as well as the needs of agricultural purchasers, including how to install a tile system to get the best yield for a particular crop. ADS’ origins are deeply rooted in the agriculture market, so the addition of Century is a natural fit that will help us to better serve this area.”
For more information, visit www.ads-pipe.com.
