Published May 16th, 2006 - 05:51 GMT

Amiantit Group subsidiary manufacturing companies Amitech Argentina and Amitech Brazil are supplying pipe systems for multi-million dollar water infrastructure projects and irrigation networks in their respective countries.

The Argentina order, valued at US$ 6 million, is for 53 kilometers of Flowtite glass reinforced polyester (GRP) pipes to transmit water from a treatment plant in the city of Trelew to Puerto Madryn on the Patagonian Coast. Once a small community founded by Welsh settlers, Puerto Madryn, is a sanctuary for maritime fauna, such as penguins, seals and whales, and has experienced a population explosion since has become a popular tourist destination for whale-watching. In addition, Amitech Argentina is currently supplying pipes to west Buenos Aires and to Neuquen Province. The company is well placed to supply pipes for water infrastructure projects in Santa Fe, La Pampa, Cordoba and Chaco regions and to export to neighboring countries. Total orders in hand at present add up to around US$ 13 million and this amount is expected to grow during the year.

Amitech Brazil has secured two important orders. The first is for 14 kilometers of Flowtite GRP pipes and fittings urgently required for two water pipelines in neighboring Columbia.  In order to meet the short deadline, Amitech Brazil will manufacture the pipes and the lamination will be done on site by Amiantit's Columbian Flowtite licensee, Flowtite Andercol. The contract calls for after sales support which will be shared by the two companies. The second order is for 1 kilometer of Flowtite GRP pipes required by International Paper, a leading paper and pulp manufacturer in Brazil, to transport very acidic and extreme alkaline liquids. To withstand these very aggressive effluents at temperatures of up to 70 degrees centigrade the pipes will have an isophtalic body resin and a vinylester lining. Amitech Brazil is currently supplying pipes to the state of Alagoas and to Indaiatuba municipality. The company is strategically positioned to supply pipes for projects in other regions of Brazil as well as to export to its neighbors. Orders currently on the books stand at approximately US$ 5.3 million and further orders are anticipated in the near future.

These orders represent a substantial increase in market share for Amiantit pipe systems in South America and Mexico, where the upsurge in economic growth is enabling governments, municipalities and the private sector to proceed with infrastructure development projects necessitated by population growth and industrial expansion.

Flowtite, the GRP pipe industry's leading manufacturing process, is a fiberglass technology that is exclusively owned by the Saudi Arabian Amiantit Company.  Within the Amiantit Group's total of 34 manufacturing facilities in 18 countries world wide, Flowtite GRP pipes are manufactured by Amiantit Fiberglass Industries Limited (AFIL), Amiantit Fiberglass Industries India Limited (AFIIL), SUBOR Turkey, and at Amitech subsidiary factories in Germany, Poland, Spain, USA, Argentina, Brazil, South Africa and Kazakhstan. Two more Amitech factories are under construction in Algeria and Morocco. In addition to its own manufacturing plants, Amiantit licenses its Flowtite technology to manufacturers in other countries.

Amiantit GRP pipes are corrosion-resistant, strong, durable, lightweight, and easy to install. They offer a cost-efficient, environment-friendly solution for pipe systems required for municipal water and sewage infrastructure networks and also have industrial, agricultural and marine applications. In addition, GRP is used for corrosion resistant single and double wall tanks for underground and above ground storage of fuel oils and petrochemicals.

Amiantit environment-friendly GRP pipes being laid to transport water to Puerto Madryn in Argentina.

The Saudi Arabian Amiantit Company was established in 1968 at Dammam as a limited liability company and was converted into a joint stock company in 1994. It started with a paid-up share capital of SAR 4 million, which is currently standing at SAR 1.155 billion. Its shares are traded on the Saudi Stock Exchange. The prime activity of the company is to initiate and manage new industrial projects, and market its technologies and products. The company also monitors and controls the business of all the Amiantit Group subsidiaries through its corporate management office in Dammam, Saudi Arabia.

The Amiantit Group is a leading industrial organization with global strength and is comprised of companies in the Kingdom and abroad that manufacture various kinds of pipes, joints, fittings, tanks, rubber products and related accessories. Other activities include own and transfer technology, and water project consultancy and management all around the world.



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