Shawcor Ltd. announced that it will be expanding its Composite Systems segment production capabilities in the US, with commitments for two new operating facilities. Capital expenditures for these operating facilities are expected to represent, in the aggregate, approximately $60 million across 2023 and 2024. The 2023 portion of these organic growth investments form a part of the Company’s previously communicated capital expenditure guidance of $160-$180 million for the current year. These facilities will expand the Company’s capability to deliver premium spoolable composite pipe and market-leading underground fuel and water storage tanks, more specifically:
- An additional production facility for its Flexpipe® business, located in Texas. The Flexpipe business manufactures premium flexible fiberglass reinforced composite pipe used for oil and gas gathering and water disposal lines, carbon dioxide injection lines and other applications requiring corrosion resistance and high-pressure capabilities, and;
- An additional production facility for its Xerxes® business, located in South Carolina. The Xerxes business manufactures market-leading fiberglass reinforced plastic underground storage tanks, primarily used within the retail fuel, storm water and wastewater markets.
Both facilities will be populated in a phased manner, are expected to be operational by the end of 2024 and to approach normalized levels of production in 2026. The Company believes that, in combination, these facilities, with initial equipment installations, have the potential to enable over $100M of incremental annual revenue generating capacity as they approach efficient utilization levels.
