Amitech closes biggest contract for supply of FRP pipes in Brazilian history

July 9, 2007
A company specializing in the manufacture of piping for basic sanitation and irrigation systems, Amitech -- local branch of the Saudi Arabian group Amiantit -- signed the biggest contract for the supply of fiberglass reinforced polyester (FRP) pipes in Brazilian history. The company won the international public tender of the Secretaria de Recursos Hídricos-SRH (Secretary for Water Resources) of the State of Ceará. "Over the next twelve months, we will supply around 19 km of...

• Company wins public tender to supply around 19 km of piping in the Integration Channel, in Ceará

SAO PAULO, Brazil, July 2, 2007 -- A company specializing in the manufacture of piping for basic sanitation and irrigation systems, Amitech -- local branch of the Saudi Arabian group Amiantit -- signed the biggest contract for the supply of fiberglass reinforced polyester (FRP) pipes in Brazilian history.

The company won the international public tender of the Secretaria de Recursos Hídricos-SRH (Secretary for Water Resources) of the State of Ceará. "Over the next twelve months, we will supply around 19 km of piping for the fifth stage of construction of the Integration Channel, the largest distribution work for water for consumption and irrigation ever built in Ceará", commented Roberto Roselli, director of Amitech.

The Integration Channel will be 255 km in length and will reinforce supply to the metropolitan region of the cities of Fortaleza and Pecém, integrating with the Jaguaribe river basin. Throughout the negotiation, Amitech, and its FRP pipes, were rigorously analyzed by two entities which finance and support the construction of the Integration Channel: Japan Bank for International Cooperation (JBIC) and the Ministry for National Integration, through Proágua -- the program for the development of water resources for the semi-arid regions of Brazil.

In addition to Amitech, manufacturers of steel and cast iron pipes also took part in the competitive tender. "Besides price, which is a determining factor in any public tender, we had to meet with a series of requirements stipulated, such as compliance with the international standards, operations in accordance with quality certification ISO 9000 and, above all, presentation of proofs that the company had already provided similar supply to that of the objects of the tender", the executive said. Since it has only been in the market for a few years, Amitech used the documentation of the Spanish unit of the Amiantit group -- a conglomerate which has manufactured more than 80.000 km of FRP pipes worldwide -- and which formed a consortium with Amitech Spain. "International public tenders enable this type of association", Roselli emphasized.

After gaining approval in all the technical issues, Amitech presented a quote of US$ 12 million, compared with a quote of US$ 18 million from the manufacturer of steel pipes, and more than US$ 25 million from the company which specializes in transforming cast iron. "This difference makes FRP highly suitable for works such as that tendered by the SRH", explained Roselli. He referred to the pipe diameters and pumping pressures. "FRP is the most recommended material for pipes of 400 to 4.000 mm in diameter submitted to service pressure of between 40 and 250 mca". In the case of the Integration Channel, the pipe diameter specified in the tender was 1200-1500 mm, with capacity to withstand pressure of up to 120 mca. "This is a typical example of a supply which, thanks to the lower price, will guarantee major savings for the project contractor", said the director of Amitech.

Compared with steel, the raw material transformed by Amitech will enable savings of US$ 6 million for the SRH coffers -- sufficient funds to purchase, on average, an additional 9 km of FRP pipes. "There is no doubt that the Integration Channel will be an excellent calling card for Amitech to present to the Brazilian sanitation and irrigation market", added Roselli.

Amitech, Brazilian subsidiary of the Saudi Arabian group Amiantit, is one of the largest local manufacturers of fiberglass reinforced polyester (FRP) pipes. Founded in 2000, its Ipeúna plant, in the interior of São Paulo, transforms many kilometers of pipes each month, which are consumed by the basic sanitation, agriculture, and industrial sectors.

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