Mexican pipe maker Sadmx SA de CV is talking with several U.S. pipe companies that want to enter the Mexican market.
Based in LeÃ³n, in central Mexico, Sadmx extrudes high density polyethylene pipe for storm drains, sanitary sewage, water pressure and conduit. The firm claims it has a 30 percent share of that market in Mexico.
The company already has agreements to sell products in Mexico from three U.S. firms: plastic pipe extruder Prinsco Inc. of Prinsburg, Minn.; fiberglass pipe maker Future Pipe Industries Inc. of Washington; and iron pipe maker U.S. Pipe & Foundry LLC of Birmingham, Ala.
Advanced Drainage Systems Inc. of Hilliard, Ohio, dominates Mexico's HDPE corrugated pipe sector. Sadmx's founder, Martin Castelazo, is a former ADS worker.
Currently Sadmx employs 180 and is expanding into service, engineering and consulting in the water pipe market. Castelazo is president of the National Association of HDPE Pipe Manufacturers and is on the industry's national council in Mexico.
A member of a family with U.S. and Mexico ties, he was honorably discharged from the U.S. Army 10 years ago and returned to Mexico with $10,000 in his pocket. While looking to establish his own small business, Castelazo was given the opportunity to represent ADS, which was eyeing the Mexican market.
``He accepted the challenge of introducing an unknown product to Mexico ... and specifying the product among the public utility companies that were using traditional materials such as concrete and PVC pipe,'' according to a Sadmx news release. ``In effect, he established the market for corrugated polyethylene pipe for sanitary sewage in Mexico.''
Castelazo later became associated with Quail Piping & Products Inc. before becoming independent. He set up a small plant with a corrugating machine, making HDPE pipe from 10-24 inches in diameter. He also imported products from companies such Hancor Inc. (now part of ADS) and Prinsco.
Little by little, he acquired new equipment and, as sales grew, he invested in new infrastructure. He built a plant, which under one roof manufactures HDPE corrugated pipe for storm drain and sewage applications from 3-24 inches, solid-wall pipe from half an inch to 12 inches for water pressure applications, and sanitary sewage pipe made to ASTM standards from 30-60 inches.