Insituform Technologies, Inc. (NASDAQ Global Select Market: INSU) announced Sept. 24 that Insituform’s Mexican joint venture, United Pipeline de Mexico de C.V. (UPM), has been awarded a $12.4 million contract by the Mexican national oil and gas company Petróleos Mexicanos (Pemex). The contract includes the construction, replacement and rehabilitation of approximately 40 kilometers of pipelines in Mexico’s Chicontepec oil region. Insituform’s subsidiaries, Corrpro Companies, Inc. and The Bayou Company, Inc., will provide cathodic protection and field joint coating services for the project.
“This contract validates our decision to expand Insituform’s oil and gas platform with our 2009 acquisitions of The Bayou Companies and Corrpro Companies. The joint marketing and cross-selling of our expanded product and service offerings provide additional value to our clients and positions the Company for new project opportunities,” said J. Joseph Burgess, Insituform’s President and Chief Executive Officer. Burgess further added, “this contract also recognizes the benefit of our Company’s comprehensive logistics and project management capabilities. We are positioned to address a customer’s various pipeline installation, protection and rehabilitation needs with the various products and services offered from the family of Insituform companies.”
Work on this project is expected to begin in November and to take approximately 16 months to complete. UPM will oversee new construction, including corrosion protection services, and the rehabilitation of over 24 kilometers of pipeline using Insituform’s Tite Liner polyethylene lining system. The new and rehabilitated pipelines will be used to transfer oil from well-heads to production facilities in the Chicontepec Basin.
“UPM has been working with Pemex for over 14 years. We are excited about this new project opportunity and also pleased to be able to engage the additional services of Corrpro Companies and Bayou Companies on this project,“ said Dorwin Hawn, Vice President – United Pipeline Systems for Insituform.
About United Pipeline de Mexico
UPM is a joint venture between United Pipeline Systems, a division of Insituform, and Miller Pipeline de Mexico, a pipeline and infrastructure construction company serving the natural gas, oil, water and telecommunication markets of Mexico. UPM offers pipeline construction, protection and rehabilitation services throughout Mexico.
About Bayou Companies
Bayou was acquired by Insituform Technologies, Inc. in February 2009. Bayou is a leading provider of cost-effective solutions to onshore and offshore energy and infrastructure companies primarily in North America and the Gulf of Mexico. Bayou’s products and services include internal and external pipeline coating, lining, weighting and insulation. Bayou also provides specialty fabrication and services for offshore deepwater installations, including project management and logistics. More information about Bayou can be found on its internet site at www.bayoucompanies.com.
About Corrpro Companies
Corrpro was acquired by Insituform Technologies, Inc. in March 2009. For over 25 years, Corrpro has been a leading provider of cathodic protection systems and engineering services. As a subsidiary of Insituform Technologies, Inc., Corrpro offers corrosion solutions for every industrial market including pipeline, refinery, above and underground storage tanks, water, wastewater, concrete, infrastructure, offshore, and marine. More information about Corrpro can be found on its internet site at www.corrpro.com.
About Insituform Technologies
Insituform Technologies, Inc. is a leading worldwide provider of proprietary technologies and services for rehabilitating sewer, water, energy and mining piping systems and the corrosion protection of industrial pipelines. More information about Insituform can be found on its internet site at www.insituform.com.