Portland Welcomes Oregon Steel Pipe Mill and Bredero Shaw Steel Pipe Coating Plant

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Researched by Industrial Info Resources (Sugar Land, Texas). Oregon Steel Mills, Incorporated (NYSE:OS ) (Portland, Oregon) placed itself under what has been referred to as an aggressive schedule to complete the new $35 million, large diameter, spiral weld steel pipe mill by the end of the year. The produced pipe will be used for natural gas, oil, and water pipelines. By all accounts, it looks like the project will be meeting that goal with time to spare. Adjacent to the pipe mill, Bredero Shaw, a division of ShawCor, Limited (NYSE:SCL.A ) (Toronto, Ontario), is building an $18 million steel pipe coating plant. That same dynamic schedule was called into play once an agreement was reached for Bredero Shaw Company to supply the new pipe mill with coating services. The agreement between Bredero Shaw and Oregon Steel contained provisions, whereby Bredero Shaw would supply coating services for fusion bond epoxy corrosion coatings and internal linings, in exchange for the exclusive right to provide Oregon Steel with all of its coating requirements.

It was early in July 2004, when the announcement came that a new mill would be built next to the existing rolling mill and shortly thereafter the announcement that Bredero Shaw Company planned to build adjacent to the plants to provide all the coating needs for the pipe mill. Bredero Shaw, ShawCor's largest division, considered a global leader in pipe coating solutions, employs approximately 4,000 permanent and contract personnel located at offices and facilities around the world. The division provides specialized coating systems and related services for corrosion protection, insulation and weight coating applications on land and for marine pipelines, including highly-engineered corrosion and insulation systems for deepwater applications. It’s been recorded that Bredero Shaw has coated more pipelines in more diverse geographical areas and climates than anyone in the industry.

Shaw Pipe Protection, Limited and ShawCor Pipe Protection, LLC, recently received another contract from Oregon Steel Mills, Incorporated to provide anti-corrosion and internal flow efficiency coatings for a notable portion of the Kinder Morgan Rockies Express Pipeline Project. The pipe will be coated with fusion bond epoxy (FBE) at Shaw Pipe Protection's Camrose, Alberta. The company has plants and service yards in more than 20 countries around the world.

Oregon Steel Mills and the Port of Portland signed an agreement, which will allow the company to grow its steel slab import volumes from 800,000 tons annually to an expected one million tons in 2007. The agreement provides preferential use of one berth and seventeen acres at the port's waterfront Terminal 6 for ten years with a five-year extension option. Along with the new Port agreement, when the other projects are completed by year’s end, the city of Portland will long continue to reap the benefits from the new industries and new jobs.

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