Advanced Drainage Systems Inc., the colossal maker of corrugated high density polyethylene pipe, has broken ground on yet another pipe-making plant, near Bridgeport, N.J.
The move comes just a couple weeks shy of ADS beginning commercial production at its second-newest facility, in Phoenix.
Hilliard, Ohio-based ADS is building a $12 million, 68,000-square-foot plant near Bridgeport, just across the Delaware River from Philadelphia and Wilmington, Del. The 32-acre site will employ about 100.
ADS President and Chief Executive Officer Joe Chlapaty said demand continues to be fueled by the gradual conversion from other materials to HDPE in corrugated pipe.
``The history of our company is one of conversion,'' Chlapaty said in an Aug. 23 telephone interview. ``We went from clay tiles to plastic pipe. We're seeing the continuation of that trend where alternative materials, i.e. concrete and steel, are converting to other materials, i.e. [HDPE].''
Chlapaty described the addition of the New Jersey plant as the culmination of the massive expansion plan ADS put in motion in early 2005. Then, the company announced it would open new plants in Philadelphia; Perry, Ga.; Mexico City; and Arecibo, Puerto Rico, adding about 400 employees and more than 160,000 square feet of production space.
ADS also grew dramatically after purchasing Findlay, Ohio-based Hancor Inc., a deal that paired the two largest producers of HDPE pipe in North America. With the New Jersey and Phoenix sites, ADS will have 38 domestic pipe plants, and 45 in total.
The company makes 2- to 60-inch pipe for drainage and storm sewer applications.
Plastics News estimates that ADS sold about $930 million in pipe last year.