TPi October 2009

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October 2009 Tube Products International 9
news business & market
New opportunities in the chemical and
petrochemical markets
WITH a newly opened office in Buenos Aires, Argentina, RathGibson, a
manufacturer of welded, welded and drawn, and seamless stainless steel,
nickel, and titanium tubing, has found new prospects with chemical and
petrochemical companies in the countries of Brazil, Mexico, Argentina, and the
rest of Central and South America.
“While we have always supported consumers in Central and South America,
the opening of our Buenos Aires office has led to affiliations with new
channel partners and customers that we would not have gained otherwise,”
said Andrew Yeghnazar, vice-president – international sales and business
development. “RathGibson continues to put the needs of our customers first
with our commitment to provide real solutions in a timely manner. RathGibson’s
empowered associates are able to make decisions based upon their firsthand
experience of local industrial requirements.”
A main manufacturing segment in Central and South America is chemical and
petrochemical processing. The chemical sector in Brazil is the ninth largest in the
world. Brazil’s petrochemical companies have been undergoing a restructuring
to streamline effectiveness and increase efficiencies. Mexico’s chemical
industry is still experiencing growth, while its government is encouraging private
investment in petrochemical processing. Argentina’s petrochemical production
has been increasing, while Argentina’s chemical industry accounts for 5% of
gross domestic product (GDP). All these countries represent opportunities upon
which the RathGibson Buenos Aires office will expand.
Chemical and petrochemical
companies chose RathGibson for
their tubing in various alloys, including
stainless steel 304L and 316L, duplex
stainless steel Duplex 2205, Lean
Duplex 2102, Lean Duplex Nitronic
19D, Lean Duplex 2003, Lean Duplex
2304, Super Duplex 2304, and Super
Duplex 2507, titanium, and nickel.
RathGibson tubing is suited to
challenging applications such as
ubend, heat exchangers, steam
condensers, desalinisation, feedwater
heaters, instrumentation, pressure
coils, steel boilers and super heaters.
RathGibson – USA
RATHGIBSON and its domestic
affiliates have announced that they
have begun reorganisation proceedings
under Chapter 11 of the United States
Bankruptcy Code in the United States
Bankruptcy Court for the District
of Delaware.
In connection with the filing, RathGibson
also has filed a proposed plan of
reorganisation that provides for holders
of allowed general unsecured creditors
to be unimpaired and paid in full on
undisputed amounts owed prior to the
bankruptcy filing. The plan has the
unanimous support of the company’s
prepetition secured lender, boards
of directors, and the management
leadership of the company, as well as
certain key noteholders. The plan, if
consummated, will result in significantly
reducing the company’s debt burden.
The Chapter 11 filingmarks an important
step in RathGibson’s ongoing efforts
to position the company for long-
term success.
“The current management team
inherited a significant debt load that
cannot be sustained, particularly in
these challenging financial markets,”
said Mike Schwartz, president and CEO
of RathGibson. “As a result, we must
take action to position the company for
the future. No one should be confused
about what a bankruptcy process
means for RathGibson. Following a
record year of performance in 2008 for
RathGibson and the industry, we are
experiencing demand levels reduced
by 50%. This reduction in demand
combined with our leveraged position
necessitates this action. We will emerge
from this process stronger than ever.”
Mr Schwartz emphasised that the
Chapter 11 filing should have no impact
on day-to-day operations. “We have,
subject to bankruptcy court approval,
which we expect to obtain, secured
‘debtor-in-possession’ financing which
will provide the company with sufficient
liquidity to continue normal operations
during this transition period. Our brand,
our products, our quality systems and
our people remain strong. This process
is strictly a financial restructuring of
our debt. We are fully committed to
ensuring that our valued customers
and channel partners are not affected
by this restructuring process. During
this period, we will work even more
closely with our customers, channel
partners, vendors, suppliers and
employees to deliver the same level of
RathGibson enters important
phase of financial restructuring
service they expect and deserve from
RathGibson. I remain thankful for the
steadfast support of our employees
and other stakeholders throughout this
entire process, and I am confident
in our ability to expand and pursue
new opportunities for the RathGibson
brand.”
RathGibson – USA