US-based Advanced Drainage Systems, Inc. (ADS), the world's largest producer of corrugated high-density polyethylene (HDPE) pipe entered into a joint venture agreement with Brazil's Tigre S. A. (Tigre) for the South American market. Tigre is the premier manufacturer of PVC pipe and fittings in Latin America. The joint venture, Tuberias Tigre-ADS Limitada, will combine ADS' corrugated pipe and Tigre's mining, solid wall pipe to expand sales of both products in South America. The joint venture will maintain headquarters in Santiago, Chile and employ sales, technical support and distribution centers throughout South America. The joint venture anticipates a new facility, located in Rio Claro, SP Brazil to begin manufacturing corrugated HDPE pipe starting in the fourth quarter of 2009.
In addition, the two existing plants owned by ADS in Lampa and Antofagasta, Chile will continue operation and be transitioned to Tuberias Tigre-ADS Limitada following the joint venture closing. Products manufactured by the new venture will include corrugated HDPE pipe up to 48" (1200mm) in diameter. A solid wall pipe offering up to 24" (600mm) is scheduled to be available in the third quarter of 2009. The joint venture comes at a time when infrastructure expansion and water-related projects are being increasingly planned around Latin America. In addition, the demand will gain help from cities that are going to host the FIFA World Cup in 2014.