Expansion in the pipeline

The Shaw Group today announced that it has taken steps to expand its pipe fabrication capacity by approximately 30% to support increases in industrial demand for piping. Demand is said to be particularly strong from the power, refining and petrochemicals sectors.

Already the largest pipe fabricator in the US, Shaw's strategic expansion program includes the expansion and reopening of existing facilities, acquisitions, as well as potential development of new-build facilities in the US or internationally.

As part of this strategic initiative, Shaw has acquired Mid States Pipe Fabrication, one of the top five pipe fabricators in the US. The acquisition includes a modern 150,000 square foot pipe fabrication workshop with radiographic and painting facilities on a 48-acre site in El Dorado, Arkansas.

Mid States Pipe Fabrication specialises in fabrication of complex piping systems from raw materials including carbon steel, stainless steel, chrome, titanium, aluminium and other metals. Mid States is fully staffed and operating and is expected to immediately increase Shaw's pipe fabrication capacity. Shaw also expects that production at the Mid States facility potentially could be increased significantly in the near future.

Financial terms of the Mid States acquisition were not disclosed.

Shaw also announced that it is currently expanding operations at its Sunland facility in Walker, Louisiana, one of the USA’s single largest pipe fabrication and manufacturing sites.

The expansion at the Sunland facility will include an additional 20% of enclosed fabrication workshop space and an additional 10 acres of lay down and pipe storage yard. The expansion is expected to increase the facility's production capacity by approximately 30%. The expansion at Sunland is expected to bring total employment at the facility to over 650. Shaw also recently reopened its 130,000 square foot pipe fabrication facility in

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