SOURCE: Northwest Pipe Company

January 08, 2008 16:30 ET

Northwest Pipe Company Awarded $30 Million Casings Contract

PORTLAND, OR--(Marketwire - January 8, 2008) - Northwest Pipe Company (NASDAQ: NWPX) announced today it has been awarded an approximately $30 million contract by Major Tool & Machine Inc. of Indianapolis, Indiana, to manufacture tubing for steel casings that will be used for centrifuge machines in USEC's American Centrifuge Plant in Piketon, Ohio. Northwest Pipe will begin manufacturing the tubing in 2008 at its Parkersburg, West Virginia Division. The contract will continue until 2012.

"We are excited to be a part of this program," said Brian W. Dunham, President and CEO. "Our commitment to quality, years of experience, customer service and state-of-the-art equipment all played a part in getting this contract. We are also pleased to be working with Major Tool & Machine, a very experienced fabricator for critical components in aerospace, defense and power applications."

Major Tool & Machine was earlier awarded the contract to supply the completed casings which will be installed in USEC's plant. The American Centrifuge Plant will include 11,500 separate centrifuge machines.

As America's only commercial uranium enrichment facility using U.S. centrifuge technology, the American Centrifuge Plant will play an important role in America's energy security. Enrichment is the process by which the concentration of the fissionable uranium isotope, U-235, is increased in order to make fuel for nuclear power plants. USEC plans to begin operations in 2009 and be fully operational by 2012.

Northwest Pipe Company manufactures welded steel pipe and other products in three business segments. Its Water Transmission Group is a leading supplier of large diameter, high-pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, traffic signposts, agricultural, energy, industrial and mechanical applications. Its Fabricated Products Group manufactures propane tanks and other fabricated products. The Company is headquartered in Portland, Oregon and has ten manufacturing facilities across the United States and Mexico.

This release contains forward-looking statements, including but not limited to those regarding the project described above. These statements reflect management's current views and estimates of market circumstances, industry conditions and Company performance. Actual results could vary materially from the description contained herein due to many factors including market demand, operating efficiencies, availability and price of raw materials, and other risks described from time to time in the Company's reports to the Securities and Exchange Commission.

Contact Information

  • For more information, contact:
    Brian Dunham