Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) announced today that its joint venture, UPS-Aptec Limited, has been awarded a $67.3 million (USD) project for the installation of approximately 135 miles of high-density polyethylene (HDPE) liner in pipelines located in the Khouribga basin in Morocco. UPS-Aptec Limited is 51% owned by United Pipeline Systems International, Inc., a subsidiary of Insituform, and 49% owned by Allied Pipeline Technologies SA, a Chilean company (“APTec”).
UPS-Aptec Limited will install the HDPE liner in new pipelines for the Office Cherifien des Phosphates (OCP) Slurry Pipeline project. OCP is the world’s largest exporter of phosphates and derivatives. UPS-Aptec Limited is a subcontractor to Tekfen Construction and Installation Co. Inc., a Turkish company, the general contractor for the project. The OCP slurry pipeline will be lined with HDPE pipe to provide corrosion protection and abrasion resistance to the newly installed pipelines, which will carry several grades of phosphates to Jorf Lasfar Terminal located between Khouribga and Jorf Lasfar.
J. Joseph Burgess, President and Chief Executive Officer of Insituform, said, “We are proud to have secured this project, which is the largest single project in United Pipeline Systems’ history. Securing this project required the coordinated efforts of United Pipeline Systems, Insituform and APTec. The partnership brings together United Pipeline Systems’ long history and vast experience working on large Tite Liner® projects in new countries while APTec brings the experience of Tehmco SA, a Chilean company and affiliate of APTec (“Tehmco”), in producing HDPE pipe. Tehmco has teamed up with a local HDPE producer and will be adding a new extrusion line to produce the HDPE pipe for the project. This project together with Insituform’s Energy and Mining group’s overall efforts in the Middle East and North Africa are expected to generate over $120 million in revenues in 2012.”
Dorwin Hawn, Senior Vice President, Energy and Mining, of Insituform, said, “This historic contract award recognizes United Pipeline Systems’ ability to manage and execute complex and challenging projects in difficult work environments. This project award also highlights the growing acceptance and endorsement of Insituform’s Energy and Mining group’s product and service offering throughout the Middle East and North Africa, further validating the decision to focus our business development efforts in these important geographic regions.”
This project is expected to begin in the fourth quarter of 2011 and be completed by the end of 2012.
About Insituform Technologies, Inc.
Insituform Technologies, Inc. is a global leader in infrastructure protection. Insituform provides proprietary technologies and services for the corrosion protection of industrial pipelines and the rehabilitation and strengthening of sewer, water, energy and mining piping systems, buildings, bridges and tunnels and waterfront structures. More information about the Company can be found on its internet site at www.insituform.com.
About United Pipeline Systems
United Pipeline Systems, a subsidiary of Insituform Technologies, Inc., is a global leader in providing HDPE lining systems for internal pipeline protection including United’s proprietary Tite Liner® and Safetyliner™ product and service offerings. Since 1984, United has installed its Tite Liner® system in over 9,000 miles of pipelines around the world. More information about United Pipeline Systems can be found on its internet site at www.unitedpipeline.com.
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, 2010, as filed with the Securities and Exchange Commission on February 28, 2011 and in our subsequent quarterly reports on Form 10-Q. In light of these risks, uncertainties and assumptions, the forward-looking events may not occur. In addition, our actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, we do not assume any duty to update forward-looking statement, 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.
Insituform®, United®, Tite Liner®, Safetyliner™, Global Pipeline Protection™, the Insituform® logo and the United® logo are the registered and unregistered trademarks of Insituform Technologies, Inc. and its affiliates.
David F. Morris, 636-530-8000
Senior Vice President and Chief Administrative Officer