Amiantit`s Joint Venture Company in Turkey

Amiantit’s Joint Venture Company in Turkey “Subor” Wins US$ 69 Million in Contracts

Amiantit's environment-friendly Flowtite pipe systems in demand worldwide

Dammam: Subor, the Saudi Arabian Amiantit Company's 50/50 percent joint venture partnership in Turkey with Yapi Merkezi Construction and Industry Inc., has recently been awarded nine orders with a total value of SR 260,392,500 (USD 69,438,000). The biggest of the contracts, and the biggest in the ten year history of Subor, came from the Ankara Metropolitan Municipality Water and Sewage Administration (ASKI) which has ordered the supply of almost 78 thousand metres of 1600 mm diameter GRP (glass reinforced polyester) pipes

Ankara, the capital of Turkey, has more than four million inhabitants and is facing a serious water shortage problem due to constantly low rainfalls. It is expected that all available water resources will be exhausted within the next seven months. In near future, the new GRP pipeline will convey water from the Kizilirmak River to the Ivedik water treatment plant near Ankara. Dispatch has already started and the last pipes will be supplied on site in August 2007.

The second biggest of the contracts is for the supply of 23 km of 2000 mm diameter GRP pipes for the raw water transmission line at Isdemir (Iskenderun Iron and Steel Works Inc.) in Iskenderun city. Isdemir is a very big producer of iron and steel products and has a large manufacturing facility near Iskenderun. Although there is also a large steel pipe manufacturing plant next to the Isdemir facility in Iskenderun, upon evaluating the advantages of the GRP pipes offered by Subor, such as lower cost, corrosion-resistance, longer service life, and easier and quicker installation, Isdemir finally chose GRP pipe over steel pipe. Delivery will start in May 2007 and the pipe supply is scheduled for completion within seven months. This contract is clear evidence of how Flowtite GRP pipe compares favourably with steel pipe.

The remaining orders secured by Subor are also for Amiantit's Flowtite GRP pipes and include pipe systems for the transmission of drinking water and sewage, and for agricultural irrigation networks.

'First and foremost I must congratulate everyone at Subor for celebrating their tenth anniversary by securing contract awards that amount to more than a quarter of a billion Saudi Riyals, said Eng, Fareed Al-Khalawi, Managing Director and President of the Amiantit Group. 'It is a magnificent achievement and one that highlights the importance of our joint venture partnership with Yapi Merkezi and our exclusive ownership of the Flowtite technological manufacturing process. Amiantit's environment-friendly GRP pipes are in demand throughout the world and the strategic positioning of our manufacturing facilities around the globe enables us to readily supply and install our GRP pipe systems in the regions where they are most needed.'

Subor’s Turkish partner Yapi Merkezi Construction and Industry Inc (Yapı,, Merkezi İ,,nş,,aat ve Sanayi A.Ş,,). is one of the biggest engineering and general contracting companies in Turkey and Yapı,, Merkezi Group companies are also active in the prefabrication, housing, investment and education sectors.

Flowtite is an Amiantit-owned technology which uses fibreglass to reinforce pipes that are strong and durable, yet light in weight, which reduces transportation and installation costs. Also, maintenance costs are minimal due to the resistance of GRP pipes to corrosive elements from both inside and outside of the pipes, which makes them leak-proof and therefore environment-friendly because harmful substances cannot penetrate the pipe system's surroundings and seep into the ground water.

With 34 production plants spread across the Middle East, India, North Africa, South Africa, Europe the USA, South America and China, of which more than half produce GRP pipes, the Amiantit Group is one of the world's biggest pipe manufacturers and the world leader in the research, development and ownership of pipe manufacturing technologies.

In addition, Amiantit, through its wholly-owned subsidiary company Amiwater, undertakes BOT (build, operate, transfer) projects and offers its expertise in water and waste management services on a global scale, winning more than fifty major water management projects across Europe, Africa, Asia, the Far East and South America. Whether it is commissioning a water treatment plant in Thailand or meeting the needs of an entire city in Kazakhstan, Amiwater ensures that the supply is reliable, cost effective and meets international environmental standards.

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