April 27, 2011Insituform Technologies Inc. (Nasdaq Global Select Market: INSU) announced April 25 the creation of two joint ventures with Wasco Energy Ltd. Wasco, a subsidiary of Wah Seong Corporation Berhad, is based in Kuala Lumpur, Malaysia, and is widely recognized as the world’s second largest provider of pipe coating, insulation and protection services to the oil and gas industries.
The first joint venture, Bayou Wasco Insulation Technologies LLC, which will be based in New Iberia, Louisiana, was organized to provide offshore insulation services, primarily to customers in the United States, the Gulf of Mexico, Central America and the Caribbean. The joint venture, which is owned 51 percent by Insituform and 49 percent by Wasco, combines Wasco’s expertise in the insulation market with the operational, sales and logistics capabilities of The Bayou Companies LLC, a subsidiary of Insituform. Bayou Wasco Insulation will provide energy customers a full complement of thermal insulation coating services for offshore flow assurance including poly-urethane foam and syntactic poly-propylene. The facilities are expected to be operational by the early 2012.
The second joint venture, which will be known as WCU Corrosion Technologies Pte. Ltd., will be based in Singapore and provide the product and service offerings of Corrpro Companies and United Pipeline Systems, each an Insituform subsidiary, throughout Asia. Corrpro Companies offers a comprehensive line of fully-integrated corrosion protection products and services primarily in North America, Europe and the Middle East. United Pipeline Systems is a global leader in providing high-density polyethylene (HDPE) lining systems for internal pipeline protection including United’s proprietary Tite Liner and Safetyliner product and service offerings. WCU Corrosion Technologies, which will be owned 51 percent by Wasco and 49 percent by Insituform, combines the product and service offerings of Corrpro Companies and United Pipeline Systems with the operational, sales and logistics capabilities of Wasco in Asia. The joint venture is expected to immediately begin marketing its products and services.
Insituform president and CEO J. Joseph Burgess said, “Wasco’s technical expertise in the insulation market complements Bayou’s long-standing expertise and relationships in the coatings industry. In addition, Bayou’s strategic location in the Port of Iberia, Louisiana brings tremendous opportunity to the joint venture to market and ship insulation orders throughout the Gulf and to Central America and the Caribbean. We are confident that these joint ventures will strengthen and expand our energy and mining platform in these important growth markets. With deeper offshore drilling, the market for high-quality thermal insulation is expanding rapidly. These new businesses will allow us to serve our existing customers operating in the United States, the Gulf of Mexico, Central America and the Caribbean with an expanded insulation offering and also provide an expanded product offering to Wasco’s customers in Asia.”
Wasco deputy managing director Giancarlo Maccagno said, “Wasco is excited to partner with Insituform and its family of energy and mining companies to bring the Tite Liner technology to Asia. In addition, Corrpro’s expertise as a leader in the cathodic protection industry further augments our existing business. Wasco is pleased to partner with Bayou Companies to provide Wasco’s insulation solutions to customers in the United States, the Gulf of Mexico, Central America and the Caribbean. Wasco will immediately begin marketing these solutions to our customers.”