Concrete pipe giant Hydro Conduit Corp. continues its march into polyethylene, acquiring Poly Pipe Industries Inc., a four-plant extruder of smooth-wall high density polyethylene pipe. Houston-based Hydro Conduit expects to rack up plastic pipe sales of about $70 million this year, all from HDPE pipe, from its six plants - four Poly Pipe facilities and two the firm obtained in mid-1994 from Quail Pipe Corp. Poly Pipe and Quail together generated 1994 sales of $61 million, according to Plastics News' data.
A seventh PE pipe plant, now under construction in Sandersville, Ga., should begin production in early 1996, said Rich Jakovac, Hydro Conduit's vice president of marketing.
The Quail purchase marked Hydro Conduit's entry into plastics. Purchasing Poly Pipe gives the company a strong position as North America's third-largest extruder of smooth-wall, pressure-rated PE pipe.
Hydro Conduit has a long way to go, however, to catch the two largest players, both owned by PE resin manufacturers. Plastics News' data shows estimatedsales of $143 million for both Phillips Driscopipe Inc., part of Phillips Petroleum Co., and the Plexco Division of Chevron Corp.
Natural gas distribution is the largest market for pressure-rated PE pipe. Other markets include mining, industrial fluids distribution and potable and waste water.
The acquisition was announced Nov. 1.
Hydro Conduit President Adrian Driver said, ``This acquisition is key to our continued efforts to expand our product line and geographic presence in the markets we serve.''
Poly Pipe has pipe extrusion factories at its headquarters city of Gainesville, Texas; Irwin, Tenn.; Kimball, Neb.; and Fernley, Nev. The company also runs a fittings fabrication shop in Gainesville.
Quail's PE pipe plants are in Roaring Springs, Texas, and Magnolia, Ark. The new Georgia factory will house five new Davis-Standard pipe extrusion lines in a 56,800-square-foot building.
The sale leaves intact a licensing agreement between Poly Pipe and a Mexican pipe maker, Poly Conductos SA de CV of Monterrey, according to officials of Hydro Conduit and Poly Pipe.
Hydro Conduit, through the Quail plants, extrudes small- to medium-diameter pipe. Poly Pipe brings the capability to make big pipe as large as 54 inches in diameter - used for the emerging markets of water and sewer/drain. Poly Pipe also makes dual-wall containment pipe.
The purchase price was not disclosed. Poly Pipe was pri-vately held. An eight-person board of directors held a majority ownership in the company, according to Poly Pipe President Ron Underwood. He will remain with the company to lead business development efforts.
Hydro Conduit is a subsidiary of CSR America, which runs 39 pipe plants in 24 states. CSR America, in turn, is owned by an Australian company, CSR Ltd. of Sydney, which has sales of about US$4.5 billion. CSR sales in North America are about $1 billion a year.
Hydro Conduit claims to be the only U.S. manufacturer to supply concrete pipe, PE pipe and no-dig pipe relining systems.