Leading Indian pipe manufacturer, PSL Ltd., has formed a joint venture with US-based A & L Group that will build a plant in Mississippi to meet the growing demand for large diameter line pipe used for natural gas transportation.
The facility will manufacture, coat and line large diameter API pipe with a diameter range of 24" to 60", a wall thickness range of 1/4" to 1", lengths up to 80"; and grades up to and including X80.
The state of Mississippi has allotted 156 acres of land for the joint venture, called PSL North America, and has also assured incentives such as tax free bonds and tax holidays. The plant will cost $60 million to construct and upon completion, slated for early 2008, will have an annual capacity of 300,000 net tons. PSL will hold 75 percent of the joint venture.
Mr. Ashok Punj, managing director of PSL, told the press, "In today's highly competitive business environment, the need to form a worldwide alliance is manifestly evident. We clearly saw the merits of a common umbrella from day one, as each company's competitive strengths perfectly compliment the other. We look forward to building upon our relationship with the A & L Group through the formation of this joint venture. This partnership will initiate our pipe manufacturing capabilities within the United States, and will thus be our prime inroad into the US market."