ShawCor Acquires 50% Stake in Eupec Brasil

ShawCor Ltd. said that its Bredero Shaw division has completed the acquisition of a 50% equity interest in Eupec Brasil Ltda. from Eupec PipeCoatings GmbH, subject to the receipt of regulatory approvals in Brazil.

As a result of the acquisition, Eupec Brasil has been renamed Bredero Shaw Revestimentos de Tubos Ltda. The remaining 50% equity interest in the company is owned by Delta Premium Trading Corp. Delta's principal shareholders are currently the partners in Bredero Shaw's existing Brazilian joint venture, Thermotite Brasil Ltda. Both the Bredero Shaw Revestimentos de Tubos and Thermotite Brasil coating operations are located adjacent to the Vallourec & Mannesmann pipe mill in Belo Horizonte, Brazil.

Prior to the completion of this transaction, Bredero Shaw's participation in the Brazilian pipe coating market has been focused on the provision of specialized insulation products for offshore pipelines. These projects include the current contract being performed by Thermotite Brasil Ltda. for the Petrobras PDEG project. With the acquisition of the 50% interest in Eupec Brasil Ltda., Bredero Shaw will be able to offer a complete range of anticorrosion coatings and linings along with high performance insulation coatings to serve both the onshore and offshore segments of the Brazilian pipeline market.

ShawCor Ltd. is an energy services company specializing in products and services for the pipeline, exploration and production, and petrochemical and industrial segments of the oil and gas industry. The company operates through six divisions with manufacturing and service facilities located around the world.

Bredero Shaw is a leading provider of pipe coating solutions and employs approximately 4,000 permanent and contract personnel located at offices and facilities in 15 countries. The division provides specialized coating systems and related services for corrosion protection, insulation, and weight coating applications on land and marine pipelines including the widest array of highly engineered corrosion and insulation systems for deepwater applications. This investment in Bredero Shaw Revestimentos de Tubos Ltda. is a key part of the company's overall strategy to serve growing South American oil and gas markets with leading pipe coating technologies.