Started in just 2011, Pipeline Plastics LLC will build a third plant — this one an estimated $10 million facility in Levelland, Texas — to meet demand for pressure pipe used for oil and gas applications.
The Levelland Economic Development Corp. agreed May 15 to provide economic incentives worth $750,000 for the project, which is expected to create up to 40 manufacturing jobs for bimodal high density polyethylene pipe.
Decatur, Texas-based Pipeline Plastics will be the first business to locate in an industrial rail district in Levelland. The city will use a $522,000 grant from the Texas Capital Fund to construct 1,200 feet of rail to the development.
Pipeline Plastics will invest $10 million of capital to construct a 40,000-square-foot facility that is scheduled to be operating by the end of the year on a 15-acre site.
President and CEO Monty Fisher said the company's growth is being driven by the region's oil and gas gathering.
“For this particular plant it is primarily the energy market in West Texas and New Mexico,” he said in a telephone interview.
However, Fisher said Pipeline Plastics plans to pick up more customers needing HDPE products for water, sewer, irrigation, mining and industrial applications. The company has an aggressive growth strategy with plans to become a major player in the HDPE pipe industry on a national level.
Last year Pipeline Plastics opened a plant in Belle Fourche, S.D., to serve customers in the energy fields of the Bakken Shale Formation in North Dakota and eastern Montana.