Northwest Pipe Company, a leading US-based manufacturer of engineered welded steel pipe products, has announced that it has sold its Denver steel water pipe facility in Colorado for a price of $14.4 million. The company stated that it will lease the facility back from the buyer until December 31, with two options to extend the lease-back period by 30 days each, in order to conclude production at the facility and complete final shipments. The company's steel water pipe production capacity will be reduced by approximately 20 percent as a result of this sale.
“As the market leader, we have taken out capacity in a market that has been oversupplied for an extended period of time. This action allows us to continue to sharpen our focus on margin over volume. The proceeds from this sale will provide us greater financial flexibility for future opportunities in the water and wastewater infrastructure markets," stated Scott Montross, Northwest Pipe Company's president and CEO.