Polyline set to disrupt industrial pipe industry with new tech
Perth-based plastic pipe manufacturer Polyline Pipe Systems is gearing up to disrupt the industrial pipe industry with its revolutionary hi-tech “mobile pipe extruder”. The company is looking to list on the ASX next year and has already secured at least one ASX-listed mining client who says its onsite pipe manufacturing technology has “significantly reduced” transportation costs.
The company is now eying opportunities in the global high-density polyethylene, or “HDPE” pipe market across a number of sectors including infrastructure, agriculture, mining, oil and gas.
The up-and-coming innovator has recently provided a successful on-site pipe manufacturing service to uranium player Vimy Resources.
Polyline has developed a patented, fully mobile, modularised system that is transported to the site on semitrailers, where the HDPE pipe is then produced and extruded in-situ where required. It can even move, extrude and lay pipe at the same time, offering significant benefits over the existing supply chain that simply manufactures pipe in the city before transporting it to site.
Across the ages, piping has proven itself an essential cornerstone throughout nearly every conceivable industry from agriculture and utilities to mining, oil and gas. With civilisations going to great lengths to fashion pipes from different materials, which even includes wood historically, piping is an essential part of almost every industrial operation.
Interestingly, much of today’s piping infrastructure is of the plastic variety and whilst polyvinyl chloride pipe – commonly referred to as “PVC” – is the more widely recognised type, HDPE pipe has carved out its own niche with its increased resilience and flexibility – and a lifespan exceeding 100 years.
Polyline’s says its mobile pipe manufacturing and laying technology is the next evolutionary stage for HDPE pipeline construction.
According to Polyline, its process is cost-efficient and rapid when compared to traditional HDPE pipe installation. It requires fewer welds and fewer people to install and importantly, there are no known comparable rivals.
Traditionally, industrial-scale piping systems were heavy and difficult to transport and metal or concrete pipes in particular were prone to leaking. Polyline says HDPE is six to eight times lighter than traditional cast iron and galvanised iron pipes.
Whilst the company is selling the same HDPE pipes already used in the industry, it says its unique method of onsite manufacture and installation is the point of difference.
According to management, Polyline can produce more pipes on-site with a truckload of the precursor resin material than a standard truck can deliver, depending on the size of the pipe.
Vegetation clearing can also be significantly reduced when compared to the requirements of facilitating a horde of heavy machinery in traditional delivery and installation.
In a report commissioned by Polyline, market research group Industry ARC forecast the HDPE pipe market to grow to $20.4 billion in 2025 from $16.3 billion in 2020. Polyline says the figures only represent the sale of the pipes themselves and not the delivery and installation.
The concept of rolling out its technology to developing countries in need of entire piping systems offers potentially massive upside for Polyline.
During the March quarter of 2022, Polyline Pipe Systems was employed by the $272 million market-capped Vimy Resources for the production of 8.3km of HDPE pipe at its Mulga Rock uranium project in Western Australia.
Specifically, the work was commissioned for the purpose of delivering raw water from the Kakarook borefield to its processing plant site location.
Polyline successfully produced the pipe in a stationary manner with its mobile pipe extruding system and acknowledged its engagement with Vimy as an “excellent litmus test”.
Commenting on the innovative method, Vimy said it “significantly reduces transport costs and minimises welding requirements and potential failure points”.
Although the contract was a landmark achievement, the engagement only required Polyline to use its innovation to produce the pipe onsite in a stationary manner – leaving the door ajar for Polyline to deploy its simultaneous mobile pipe production and installation that extrudes and lays pipe over long distances.
The first client is always hardest to sign for any new technology and with that box now ticked, Polyline can focus on building its track record as it aims to transform itself from a private company with a potentially game-changing concept to an ASX-listed company with access to capital that will allow it to scale up quickly.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au