BATON ROUGE, LA.-Specialty Plastics Inc. has inked a three-year licensing deal that gives Malaysian firm Dialog Composites Sdn. Bhd. rights to manufacture the Baton Rouge firm's Fiberbond composite pipe and fittings in Asia. Specialty makes fiberglass-reinforced plastic pipe systems at its plant in Baton Rouge, and licenses its pipe-making technology worldwide, for the oil and gas, petrochemical, chemical process and pulp and paper industries in North and South America, Africa and Europe.
But the Gulf Coast ``is really our bread and butter,'' said Rick Lea, vice president of marketing. The firm recently won pipe supply contracts with Shell Oil Co. of Houston and Oryx Energy Co. of Dallas.
Dialog initially will make the Fiberbond pipe at its Nilai, Malaysia, plant, according to a report in the New Straits Times of Johor Baharu, Malaysia. The firm said it expects pipe sales of about 3.5 million ringgit ($1.4 million) per year, the report said. The company is based in Petaling Jaya.
Lea could not disclose the financial terms of the deal.
At Baton Rouge, Specialty employs 60. Lea said his company projects sales next year of roughly $10 million.
``The potential for this material is unbelievable, and the offshore industry is booming right now,'' he said.