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The deal, closed during the Offshore Technology Conference in Brazil, sees the two companies unite to store and distribute special alloy pipe, fittings and flanges, mainly in Duplex and Super Duplex stainless steel.
Sandech has exclusively represented Special Piping Materials in Brazil since 2010, and the joint venture has arisen due to expanding business opportunities in the country. Antonio Marques, Sandech founder, who will be responsible for managing the joint venture comments: “From the beginning, our intention was always to bring international companies to our local market; with hard work and an increase in sales volume since the beginning of the partnership, we’ve showed Special Piping Materials that the local unity is justified economically and financially. The biggest demand for the partnership came from our clients request for an increase in local content for our products”
Les Buckley, Director at Special Piping Materials , says: “We’ve proven that we are competitive in Brazil. Our Duplex and Super Duplex products are of European origin, have recognised quality and the required trace-ability. A number of Brazilian companies have been Special Piping Materials clients for years through our international sales network and have welcomed our joint venture with Sandech as it will provide local point of contact with global capabilities.”
Strong growth in Brazil’s Oil & Gas market is expected to intensify over the next few years, where special materials are frequently used. Since 2010 Special Piping Materials has supplied materials for the majority of FPSOs which were delivered in Brazil during this period, and now intends to expand its business to other industries such as mining, paper, and water desalination.
The joint venture between Special Piping Materials and Sandech is due to commence in January 2014.