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Pipe maker ADS expands in Brazil

By: Catherine Kavanaugh

January 21, 2014

Advanced Drainage Systems Inc. is starting up a second manufacturing facility in Brazil with its joint venture partner Tigre SA to fill orders for the rapidly expanding infrastructure of South America.

The new plant in Maceio, Alagoas, which is in northeastern Brazil, will double annual capacity of high density polyethylene pipe for the joint venture.

Brazil has experienced difficult growing pains because of inadequate infrastructure. The country is investing heavily in modernizing roads, rails and airports, in part for this year's World Cup and the 2016 Olympics, while neighboring countries work to keep youthful populations, support a growing middle class, and attract businesses.

"We are excited to extend the Tigre-ADS offering throughout such a vibrant market," ADS Chairman Joe Chlapaty said in a statement.

ADS, which says it is the world's largest producer of corrugated HDPE pipe, and Tigre, a leading manufacturer of PVC pipes, fittings and accessories in Latin America, formed a joint venture in 2009.

Based in Santiago, Chile, Tigre-ADS makes and distributes HDPE pipe for storm water management, sanitation, mining, agriculture, telecom and electrical markets throughout South America.

The joint venture also has operations in Santiago and Antofagasta, Chile and Rio Claro, SP Brazil.