Lone Star, Northwest Pipe in Venture

Northwest Pipe (NWPX Quote) and Lone Star Technologies (LSS Quote) set up a marketing venture.

Portland, Ore.-based Northwest said Lone Star will act as its exclusive North American marketer of American Petroleum Institute-certified energy products manufactured at its Atchison, Kan., division.

The alliance will combine Northwest Pipe's strong manufacturing team with Lone Star's market expertise. Lone Star will immediately begin marketing Northwest Pipe's current API capabilities. Northwest Pipe will broaden its product offering over the next several months.

"This agreement is another step in our plan to improve our product mix, grow our energy market sales volume and generate stronger returns from our Tubular Products business," said Northwest CEO Brian W. Dunham. "It takes advantage of available, high-quality, efficient manufacturing capacity in our Atchison, Kansas, division and gives us instant access to energy markets through Lone Star's well-developed, extensive distributor network. We are excited about the opportunities these two companies can create by working together."

The Atchison division was opened in 1985 and has primarily focused on agriculture, fire protection and industrial applications throughout its history. The division employs 65 people and operates two mill lines. The division began to focus on the energy market in 2004 and this alliance will lead to further growth in this market.

Northwest Pipe Company manufactures welded steel pipe in two business segments. Its Water Transmission Group is the leading supplier of large-diameter, high-pressure steel pipe products that are used primarily for water transmission in the United States and Canada. Its Tubular Products Group manufactures smaller-diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications.

On Friday, Northwest rose 11 cents to $24.90 and Lone Star slid $1.43 to $46.86.