Columbus, Ohio – Advanced Drainage Systems, Inc. (ADS), and Grupo Altima, S.A. de C.V., have announced their agreement to create a pipe manufacturing joint venture. ADS Mexicana, S.A. de C.V., located in Monterrey, Mexico, will immediately begin serving the needs of Mexico with pipe produced by ADS from the United Sates. Local production will be avaialable by the of the year.
ADS, the world's largest manufacturer of corrugated high density polyethylene (HDPE) pipe and fittings, and Grupo Altima, an organization of prominent Mexican steel manufacturers and construction business leaders, will focus their efforts to meet the demand for a solidly-built infrastructure to support the country's economic development.
"Our N-12® storm and sanitary sewer pipe has been widely accepted as a superior alternative to concrete pipe in the U.S.," said Mark Arnold, ADS Vice President and General Manager International Operations. "We have shown the same economic and performance benefits to state and municipal governments in Mexico that allow greater use of limited financial resources. They have responded by specifying our pipe in the construction and repair of new and existing storm and sanitary sewer systems throughout Mexico."
The new manufacturing facility is a state-of-the-art operation built by Grupo Altima. The plant will be able to accommodate the manufacturing lines and other down-stream equipment essential to handle current and future demand. Initial pipe diameters will range from 4 inches to 36 inches, with remaining diameters supplied from ADS plants in the U.S.
"Ultimately, our goal is to manufacture all pipe diameters and fittings in Monterrey," said Juan Raigosa, General Director of ADS Mexicana. "We want to be self-sufficient in our ability to satisfy the current and increasing demand for N-12 drainage pipe in Mexico."
"The joint venture partners wanted to establish a company in Mexico that would benefit from ADS' technological expertise in manufacturing corrugated polyethylene pipe, and have a distribution system based on local knowledge to expedite the availability of N-12 pipe," said Joe Chlapaty, ADS President and Chief Operating Officer. "Grupo Altima, with their strong business acumen and knowledge of local markets in Mexico, provides that distribution and market expertise."
All employees at the new facility, including the management staff, are local residents who will be trained at ADS' U.S. facilities. Technical support representatives from ADS will be sent to the plant on an as-needed basis.
"We were impressed by the work ethic of the Monterrey-based staff, and anticipate ADS Mexicana to operate a stable, safe work environment that gives its employees the opportunity to work with the best technology and procedures in the industry," Chlapaty said.
"ADS Mexicana will continue to develop awareness and demand for N-12 storm and sanitary sewer pipe as a replacement for concrete pipe," according to Pablo Villareal, Grupo Altima President. "The culmination of the Mexico joint venture validates the vision of Grupo Altima and ADS to provide Mexico with superior drainage pipe to meet the growing demands of the country."
Advanced Drainage Systems, Inc., (ADS), founded in 1966, offers a complete line of pipe and fittings for cost-effective water management. The company produces pipe in 3-inch to 60-inch diameters, in addition to a complete line of fittings and other accessories. ADS serves the storm and sanitary sewer market, turf and recreation, and agriculture drainage markets through a global network of manufacturing plants, distribution centers and indepent distributors.
Grupo Altima S.A. de C.V. is an organization formed by a group of prominent business leaders from Monterrey, Mexico. With more that 25 years experience in the field of manufacturing and distributing of steel products such as pipe, beams and rebar, and the construction of industrial and infrastructure projects, Grupo Altima is a leader in the Mexican civil engineering and construction industry.