By Liz White, UT editor
Alberto, Toronto-ShawCor Ltd is to spend $30 million on its Canadian subsidiary, Shaw Pipe Protection Ltd, in a programme to add pipe-coating capacity in Western Canada.
This programme follows the recent termination of ShawCor's attempt to expand by buying the pipe-coating operations of its local competitor Garneau, which was delayed by a competion authority invetigation and then cancelled as the parties failed to agree details.
The new expansion will "add the necessary coating capacity required to meet the rapidly growing demand for pipe coatings including insulation coatings for the Tar Sands projects as well as large diameter transmission pipe line projects," said a company statement.
ShawCor said the investment is in three parts. First is construction of a "state-of-the-art" coating plant in Camrose, Alberta on a recently acquired 130-acre (50 hectare) site adjacent to Shaw Pipe Protection's existing coating facility. Next is the building of a new rail spur at Camrose to double transport capacity. Finally ShawCor plans to upgrade the existing Camrose coating plant to increase capacity.
ShawCor expects the programme to be finished by the end of the Q2 2007, and says it "will significantly reduce lead times, meet the growing demand for insulated pipelines in the Tar Sands region, and also enable other Alberta facilities of Shaw Pipe Protection to become more focused and efficient."