The oil and gas boom in South Dakota is prompting another plastic pipe manufacturer to expand operations in the region to keep up with demand.
Pipeline Plastics LLC intends to open a high density polyethylene pipe plant in Belle Fourche, S.D., during the first quarter of 2013.
The location will give the company good access to the energy fields of the Bakken Shale Formation in North Dakota and eastern Montana, plus easy access to Interstate 90 and markets beyond the immediate area, said Vice President Keith Fisher in a July 27 telephone interview.
Pipeline Plastics is a new company, started in Decatur, Texas, in 2011, and is led by industry veteran Monty Fisher as president and CEO. Keith and Monty Fisher are brothers.
The firm started producing HDPE pipe in Decatur in October and has since doubled capacity.
“We have an aggressive growth strategy to position our company as a major player in the HDPE pipe industry on a national level. We are bullish on the industry for both the energy and water sectors,” said Monty Fisher in a news release. “New drilling technology has opened up the United States' oil and gas development, which has created unprecedented growth in that market for HDPE pipe.”
The energy boom in North Dakota had led to a very tight employment base and a high cost of living, said Keith Fisher. Belle Fourche is far enough outside that bubble to escape the employment and cost issues, but still close enough for easy access to customers.
Pipeline Plastics will employ 25-40 people in Belle Fourche.
Fellow HDPE pipe maker WL Plastics Corp. of Casper, Wyo., announced plans in June to build a plant in Rapid City, S.D. Also, Princo Inc. opened an agricultural drainage pipe plant in Beresford, S.D., in 2011.