Tyco lands $50 million deal

Kwinana-based water pipe manufacturer Tyco Water has secured an eight month, $50 million contract to supply 10,000 steel water pipes to the Middle East.

The deal is the first major export contract for the firm, which beat international competitors to win the contract.

Water pipes manufactured at the company’s Kwinana plant will be shipped to the United Arab Emirates and used to transport water from the capital Abu Dhabi to the eastern regions of the country.

Tyco Water market manager Denis Ericson said the company would employ an additional 60 full-time staff at Kwinana to service the contract, boosting the plant’s workforce to 100, and would source local material where possible.

“All of the significant elements involved in the manufacturing process, such as the steel, the lining and coating materials and the logistics will be sourced locally wherever possible, ensuring significant flow-on benefits to associated suppliers and subcontractors continuing Tyco Water’s strong practice of supporting local industries,” Mr Ericson said.

He said the company would pursue other contracts in the Middle East and was examining the feasibility of teaming up with a Chinese joint venture partner to tackle other markets.

Mr Ericson said the Middle East contract could also prove a good example of what could be built from the South West to Perth to alleviate the State’s water supply problem.

“Should the WA Government decide to source additional water from the Yarragadee aquifer in the South West, then we believe Tyco Water’s pipeline technology is the most suitable means by which to deliver the water to consumers,” he said.

“Our Kwinana plant is equipped to manage a pipeline scheme of this magnitude without delay while at the same time fulfilling our other supply obligations.”

The Middle East contract follows a five-year, $80 million contract win for the firm earlier this month with the Water Corporation.

Under the Water Corporation contract, Tyco Water will supply about 200 kilometres of steel pipe for the Water Corporation’s ongoing development program.

Tyco also recently secured an $8 million contract to manufacture large diameter pipes for water infrastructure being built on the Burrup Peninsula.

Tyco Water’s Kwinana manufacturing facilities were established in 1960.

Covering 12 hectares it is the only facility of its type in WA with the majority of the State’s water supply flowing through pipes produced at this plant.

Tyco Water has committed more than $4 million in capital improvements at the Kwinana plant over the past three years with the majority of the improvements incorporating supply from local businesses.

Tyco Water is the water industry division of Tyco Flow Control, a business unit of Tyco International Ltd, which acquired Tyco Water in early 2000 from BHP. At the time of the acquisition, Tyco Water was known as Tubemakers Water.