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.”