Abakan Inc. (OTCQB: ABKI), winner of The Wall Street Journal's 2012 Technology Innovation Award for manufacturing technology, is set to launch its first full-scale pipe cladding facility in Euclid, Ohio. The facility will begin operations in January 2013.
The new facility will manufacture corrosion-resistant clad pipe for the oil and gas industry using ABKI's patented, proprietary CermaClad technology. The facility is expected to be one of the largest clad pipe manufacturing facilities in the United States when it becomes fully operational, with the capability to produce up to $60 million of clad pipe annually.
ABKI's CermaClad technology provides a faster, better, and more cost-effective way to apply protecting coatings on metals, enabling the metals to last up to 10 times longer. CermaClad is designed to meet the high demand in the oil and gas industry for corrosion-resistant clad pipe. An estimated 70 percent of the world's oil reserves consist of heavy, high-sulfur, "sour" crude, which will require large amounts of corrosion-resistant pipes to enable safe and efficient production.
ABKI is currently in the final stages of testing CermaClad with Petrobras S.A., the South American oil giant. The Company has completed multiple phases of testing under its cooperative agreement with Petrobras and is on schedule for qualifying its clad pipe product for oil and gas applications.
ABKI's subsidiaries, MesoCoat and Powdermet, together have won over 100 federal awards and grants. Forbes recognized MesoCoat as the #1 material science company on their list of "America's Most Promising Companies."
The commencement of production at its Ohio facility will provide a strong near-term growth catalyst for ABKI. Investors who build a position in the stock at current levels have the opportunity to profit as the Company brings its award-winning technology to market. To learn more about ABKI, watch CEO Robert Miller's presentation from the RedChip Small-Cap Virtual Conference.
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