Perma-Pipe International Holdings Inc. announces new plant in Abu Dhabi

Rhea-AI Summary

Perma-Pipe International Holdings, Inc. (PPIH) has inaugurated its largest production facility outside North America in Abu Dhabi, U.A.E., on March 16, 2023. This 6-hectare factory aims to meet the increasing demand in the district cooling and oil and gas sectors in the Middle East. The facility boasts advanced technologies for environmentally-friendly products, including the XTRU-THERM® insulation system and PolyTherm® insulation system. CEO David Mansfield highlighted its role as a global export hub, anticipating continued growth in clean energy demand.

Perma-Pipe operates in 14 locations across six countries, specializing in pre-insulated piping and leak detection systems.

Positive

• New production facility launched in Abu Dhabi enhances capacity to meet Middle Eastern demand.
• Factory equipped with advanced technologies for environmentally-friendly insulation products.
• Facility positioned as a global export hub expected to support growing clean energy markets.

Negative

• Risks from fluctuations in oil and natural gas prices affecting customer demand.
• Potential challenges related to the company's ability to comply with credit facility covenants.
• Impact of COVID-19 and global economic volatility on operations and financial stability.

SPRING, Texas--(BUSINESS WIRE)-- Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has recently opened its largest production facility outside North America in the Emirate of Abu Dhabi in the U.A.E. The facility was inaugurated by H.E. Sheikh Saeed Bin Tahnoon Al Nahyan on March 16, 2023, in an opening ceremony attended by dignitaries from Abu Dhabi, Saudi Arabia, and Qatar in addition to the group’s President and CEO David Mansfield and Chairman Jerry Walker.

To meet the growing demand for the district cooling and oil and gas industries in the Middle East, Perma-Pipe has opened the new 6 hectare factory, fully equipped with technologies to provide the latest environmentally-friendly products. The new facility will offer fabrication and Fusion Bonded Epoxy coating capabilities, and the XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density recycled polyethylene casing, and the PolyTherm® insulation system, a spray-applied polyurethane foam jacketed with fiberglass reinforced plastic.

Saleh Sagr, Sr. Vice President for Perma-Pipe’s MENA region commented, “This new production site opens up many perspectives for Perma-Pipe, the world leader in pre-engineered pre-insulated piping systems. To meet the growing demand in Middle East and North Africa, and also a logistical position to better serve the oil and gas industry in the UAE through its large capacity and an irreproachable product quality.”

David Mansfield, President and CEO commented, "This new development is not specific to the U.A.E. only. It is an export hub to serve projects all over the world. We now have a factory that is unique with its wide product offerings with the capacity to respond to the growing demand. We have every reason to believe that the demand for clean energy, such as LNG and hydrogen, will continue to grow in the years to come.”

Perma-Pipe International Holdings, Inc.

Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) is a global leader in pre-insulated piping and leak detection systems for oil and gas gathering, district heating and cooling, and other applications. It uses its extensive engineering and fabrication expertise to develop piping solutions that solve complex challenges regarding the safe and efficient transportation of many types of liquids. In total, Perma-Pipe has operations at fourteen locations in six countries.

Forward-Looking Statements

Certain statements and other information contained in this press release that can be identified by the use of forward-looking terminology constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby, including, without limitation, statements regarding the expected future performance and operations of the Company. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties include, but are not limited to, the following: (i) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) decreases in government spending on projects using the Company’s products, and challenges to the Company’s non-government customers’ liquidity and access to capital funds; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related to the Company's international business operations; (xvii) the Company’s ability to attract and retain senior management and key personnel; (xviii) the Company’s ability to achieve the expected benefits of its growth initiatives; (xix) the Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) the impact of cybersecurity threats on the Company’s information technology systems. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at https://www.sec.gov and under the Investor Center section of our website (http://investors.permapipe.com).

View source version on businesswire.com: https://www.businesswire.com/news/home/20230324005398/en/

Perma-Pipe International Holdings, Inc.

David Mansfield, President and CEO



Perma-Pipe Investor Relations

847.929.1200

investor@permapipe.com

Source: Perma-Pipe International Holdings, Inc.

FAQ

When was Perma-Pipe's new production facility opened?

The new production facility was inaugurated on March 16, 2023.

Where is Perma-Pipe's largest production facility located?

It is located in Abu Dhabi, U.A.E.

What is the primary purpose of Perma-Pipe's new facility?

The facility aims to meet the growing demand for district cooling and oil and gas industries in the Middle East.

What products does the new Perma-Pipe facility offer?

It offers fabrication and environmentally-friendly insulation systems including XTRU-THERM® and PolyTherm®.

What market does Perma-Pipe expect to serve with its new facility?

The facility is expected to serve both local markets and act as an export hub for global projects.