ST. LOUIS--(BUSINESS WIRE)--Aegion Corporation (Nasdaq Global Select Market: AEGN) today announced that United Pipelines SRL, an Argentinian subsidiary of Aegion’s United Pipeline Systems business (“United Pipeline Systems”), has been awarded an $8.3 million (USD) contract for a project that includes the installation of over 13 miles of United’s Tite Liner® high-density polyethylene (HDPE) lining system and the construction of special fittings at the Potasio Rio Colorado mining project in Mendoza, Argentina. Work on the project is expected to begin in September 2012.
United Pipeline Systems will install its Tite Liner® lining solution into parallel running 18-inch and 24-inch diameter pipelines, both of which carry a highly corrosive aqueous solution containing large amounts of potassium chloride. The Tite Liner® solution provides optimal internal protection, which significantly extends the useful life of pipelines.
The close proximity of the two pipelines poses a technical challenge uniquely suited to United Pipeline System’s years of experience. Other challenges include the installation of Tite Liner® at several tight bend junctions, which requires considerable skill in the physical pull of the HDPE liner, the requirement to fabricate and mold specific fittings at the pipe connection points to maintain the desired flow rate, and a requirement that the project be completed in approximately four months.
Dorwin Hawn, Aegion’s Senior Vice President, Energy & Mining, said, “I am confident that United’s operations group will successfully execute this project. Our significant experience installing Tite Liner® across the world proves we are prepared to meet the challenges of this particular project. Our development team has been working with Vale do Rio Doce, the mine owner, for several years to develop this project. We clearly understand the scope and technical requirements for a successful installation to maximize the useful life of these pipelines. We look forward to continuing our relationship with Vale do Rio Doce on this and future projects.”
Vale do Rio Doce is one of the largest iron and other metals mining companies in the world. United Pipelines Systems will be working as a subcontractor for Consorcio Rio Colorado, a joint venture between Odebrecht, one of the largest construction companies in Brazil, and Techint, one of the largest steel pipeline construction companies in South America.
About Aegion Corporation
Aegion Corporation is a global leader in infrastructure protection, providing proprietary technologies and services to protect against the corrosion of industrial pipelines and for the rehabilitation and strengthening of sewer, water, energy and mining piping systems and buildings, bridges, tunnels and waterfront structures. More information about Aegion can be found on its internet site at www.aegion.com.
About United Pipeline Systems
United Pipeline Systems is a global leader in providing high-density polyethylene (HDPE) lining systems for internal pipeline protection. United has constructed and internally lined more than 13,000 kilometers (8,000 miles) of pipelines on six continents since 1985. United developed the Tite Liner® system, which protects steel pipelines from a variety of chemicals and abrasives through a broad range of temperatures and pressures. More information about United can be found at www.unitedpipeline.com.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. The Company makes forward-looking statements in this news release that represent the Company’s beliefs or expectations about future events or financial performance. These forward-looking statements are based on information currently available to the Company and on management’s beliefs, assumptions, estimates or projections and are not guarantees of future events or results. When used in this document, the words “anticipate,” “estimate,” “believe,” “plan,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to known and unknown risks, uncertainties and assumptions, including those referred to in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on February 29, 2012, and in the Company’s subsequent quarterly reports on Form 10-Q. In light of these risks, uncertainties and assumptions, the forward-looking events may not occur. In addition, the Company’s actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, the Company does not assume a duty to update forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by the Company from time to time in its periodic filings with the Securities and Exchange Commission. Please use caution and do not place reliance on forward-looking statements. All forward looking-statements made by the Company in this news release are qualified by these cautionary statements.
United Pipeline Systems®, Tite Liner®, Aegion™ and the Aegion™ logo are the registered and unregistered trademarks of Aegion Corporation and its affiliates.