Shaw Group expands pipe fabrication capacity by 30%

The Shaw Group Inc. on February 5 announced that it has taken decisive steps to expand its pipe fabrication capacity by approximately 30 percent to support significant current and anticipated future increases in industrial demand for fabricated pipe and piping systems, particularly from the power, refining and petrochemicals sectors. Already the largest pipe fabricator in the United States, Shaw’s strategic expansion program includes the expansion and reopening of existing facilities, acquisitions, as well as potential development of new-build facilities in the U.S. or internationally.

As part of this strategic initiative, Shaw has acquired Mid States Pipe Fabrication Inc., one of the top five pipe fabricators in the U.S. The acquisition includes a modern 150,000-square-foot pipe fabrication shop with radiographic and painting facilities on a 48-acre site in El Dorado, Ark. Mid States Pipe Fabrication specializes in fabrication of complex piping systems from raw materials including carbon steel, stainless steel, chrome, titanium, aluminum and other metals. Mid States is fully staffed and operating and is expected to immediately increase Shaw’s pipe fabrication capacity. Shaw also expects that production at the Mid States facility potentially could be increased significantly in the near future. Financial terms of the Mid States acquisition were not disclosed.

Shaw also announced that it is currently expanding operations at its Sunland facility in Walker, La., one of the nation’s single-largest pipe fabrication and manufacturing sites. The expansion at the Sunland facility will include an additional 20 percent of enclosed fabrication shop space and an additional 10 acres of lay down and pipe storage yard. The expansion is expected to increase the facility’s production capacity by approximately 30 percent. The expansion at Sunland is expected to bring total employment at the facility to over 650. As previously announced, Shaw also recently reopened its 130,000-square-foot pipe fabrication facility in Tulsa, Okla.

J.M. Bernhard Jr., chairman, president and chief executive officer of Shaw, said, “The addition of Mid States, combined with the expansion at Sunland and the reopening of our Tulsa facility, are important initial steps in our overall strategy to meet current and forecasted pipe fabrication and manufacturing demand from our valued customers. These initial steps are expected to add approximately 30 percent to our overall pipe fabrication production capacity. This expansion strategy will be integral to sustaining our position as the world’s premier pipe fabrication and manufacturing company and in supporting our mission to provide our clients with a single source for value-added solutions.

 “We welcome Mid States to the Shaw team. Known for their quality workmanship and outstanding customer service, Mid States is one of the top five pipe fabricators in the country and is a natural fit with our operations. We are also particularly pleased to expand our Sunland facility and reopen our Tulsa location. We look forward to providing additional opportunities to the skilled workforces in those communities and strengthening our position as the world leader in pipe fabrication and manufacturing expertise.”

The Shaw Group is a leading global provider of engineering, procurement, construction, technology, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure and emergency response markets. Headquartered in Baton Rouge, Louisiana, with nearly $5 billion in annual revenues, Shaw employs approximately 21,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region.