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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

www.rathgibson.com

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

www.rathgibson.com