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SEKISUI SPR AMERICAS, LLC.

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Restructuring and Reform of the Pipeline Rehabilitation Business in the USA

09. Jun 2016

SEKISUI CHEMICAL CO., LTD
SEKISUI CHEMICAL CO., LTD. (President and Representative Director: Teiji Koge, hereinafter called "Sekisui") has restructured the pipeline rehabilitation business in the United States of America, and that the ownership of the construction company HEITKAMP, INC. (hereinafter called HEITKAMP) has been transferred by Sale to US constructions company, Michels Corporation on May 31. 2016.

1. Background and History
Sekisui’s Urban Infrastructure and Environmental Products Company established SEKISUI SPR AMERICAS, LLC. in August 2005, to start its pipe rehabilitation business in the U.S.
In December 2007, Sekisui bought HEITKAMP to roll out a broad business from pipe inspection to installation centering on the northeast coast, and expanded business by unifying the construction functions in the U.S.
Nevertheless, due to the stagnation of incoming order prices caused by fierce competitions, in recent years the construction business was resulted in negative profit.

2. Summary of the Structural Reforms and Future Developments
The business had been undergoing continuous restructuring and reforms, but to further improve profitability, drastic countermeasures were judged to be necessary. Through the current handover, all shares in HEITKAMP has been handed to the Michels Corporation, and Sekisui will withdraw completely from the construction business in the U.S.
In the future, Sekisui will specialize in businesses focusing on the sale of SPR™ method*-related products which have largest market share in Japan as well as CIPP products, NordiPipe™ and NordiForce™ applicable for pressure pipe rehabilitation, through SEKISUI SPR AMERICAS, LLC. in the U.S.

*SPR™ method:A method of rehabilitating aged pipe by winding a rigid PVC strip spirally to form a new pipe inside of an existing pipe, and then injecting a special back-filling material into the annular space between the existing and new pipes to make structural strength resumed composite pipe.

Reference

-Summary of the Company to be Handed Over (Before Handover)


-Summary of Recipient Company (Unlisted)


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