Northwest Pipe Company Expands Capacity with New Precast Concrete Pipe Plant in Utah

Rhea-AI Summary

Northwest Pipe Company (NWPX) has commenced full operations at its new precast pipe and manhole production facility in Salt Lake City, Utah. The 41,000-square-foot facility at Geneva Pipe and Precast features the Exact 2500, an advanced automated drycast concrete production system by Schlüsselbauer Technology.

The state-of-the-art facility integrates multiple automated systems including an MBK Cage Welding Machine, Advanced Concrete Technologies Batch Plant, and automated Transexact Crane. The Exact 2500 system enables rapid size transitions, requires fewer operators, and features modular form systems for quick changeovers.

This expansion follows previous installations of Schlüsselbauer systems at the company's Orem, Utah plant, including Perfect Base and Perfect Pipe equipment, strengthening NWPX's position in Utah's construction market.

Positive

• Significant production capacity expansion with new 41,000-square-foot facility
• Advanced automation reducing labor costs and improving operational efficiency
• Strategic market expansion in Utah's growing construction sector
• Enhanced manufacturing capabilities with state-of-the-art technology integration

Negative

• Substantial capital investment required for new facility and equipment
• Increased operational costs from running multiple facilities

Insights

Manufacturing Operations Expert

Northwest Pipe's new Salt Lake City facility represents a significant manufacturing advancement in concrete pipe production. The Exact 2500 system delivers multiple competitive advantages that will directly impact operational performance. Traditional concrete pipe manufacturing requires extensive downtime for size changeovers - often hours or days - while this automated system enables rapid transitions in minutes through its modular form design, dramatically improving production flexibility and asset utilization.

The integrated technology ecosystem combining automated welding, batching, and crane systems creates a synchronized production environment that eliminates traditional workflow bottlenecks. This automation typically reduces labor requirements by 50-70% versus conventional concrete pipe production while simultaneously improving dimensional consistency and structural integrity of finished products. For infrastructure components where field installation performance is critical, this precision manufacturing represents a meaningful quality advantage.

The centralized production management system enables real-time monitoring and adjustment of manufacturing parameters, typically resulting in material optimization, waste reduction, and enhanced quality control documentation - increasingly important for infrastructure certification compliance. This comprehensive automation positions Northwest Pipe among the industry's most technologically advanced manufacturers in the concrete pipe segment.

Infrastructure Industry Analyst

This strategic capacity expansion positions Northwest Pipe to capitalize on sustained infrastructure demand in the western U.S. The company's sequential investments in Utah - first in Orem and now Salt Lake City - demonstrate a methodical regional growth strategy targeting the Mountain West's robust construction market. Utah specifically has maintained construction activity exceeding national averages, supported by population growth and municipal infrastructure investments.

The reinforced concrete pipe segment represents a substantial portion of the concrete product manufacturing market, with water and wastewater infrastructure consistently rated among the most critically deficient categories by engineering assessments. This creates durable demand for precisely these products regardless of economic cycles.

Northwest Pipe's technology investment creates meaningful competitive differentiation in an industry where production efficiency increasingly determines margin performance. Advanced automation can potentially expand EBITDA margins several percentage points beyond industry averages, while the improved manufacturing flexibility enables more responsive customer service and inventory optimization.

The company's focus on water infrastructure aligns with federal funding priorities, as water systems remain among the most consistently supported infrastructure categories. This capacity expansion demonstrates management's confidence in sustained regional demand and positions Northwest Pipe to capture additional market share through enhanced production capabilities and efficiency.

Automated drycast facility significantly enhances production to meet growing demand

VANCOUVER, Wash., March 19, 2025 /PRNewswire/ -- Northwest Pipe Company (Nasdaq: NWPX), a leading manufacturer of water-related infrastructure, has launched full-scale operations at its new precast pipe and manhole production facility in Salt Lake City, Utah, to support growing regional demand. The plant is now actively producing and shipping high-quality reinforce concrete pipe.

Housed in a new 41,000-square-foot building at Geneva Pipe and Precast, the facility features the Exact 2500, a cutting-edge, fully automated drycast concrete production system by Schlüsselbauer Technology. The plant also integrates an MBK Cage Welding Machine, an Advanced Concrete Technologies Batch Plant, and a fully automated Transexact Crane, creating a seamless and highly efficient manufacturing process.

"The demand for high-quality infrastructure products continue to grow, and we are committed to expanding our precast manufacturing capabilities," said Scott Montross, President and CEO of Northwest Pipe Company. "The Exact 2500 is one of the most efficient drycast concrete pipe production plants in the North America, enabling us to scale production while improving quality, efficiency, and reliability for our customers."

A New Standard in Automated Manufacturing

The Exact 2500 system significantly increases production capacity with fewer operators. Unlike traditional methods, this automated system enables rapid transitions between pipe sizes. Its modular form system facilitates quick changeovers, minimizing downtime and manual intervention. A centralized production management system and fully automated pipe handling further optimize efficiency, speed, and consistency.

Investing in Precast Infrastructure

Northwest Pipe Company continues to invest in its precast division, reinforcing its commitment to innovation and long-term growth. The Salt Lake City facility builds on the Company's strategic expansion in Utah's robust construction market. Previously, the Company installed two Schlüsselbauer systems at its Orem, Utah, plant: the Perfect Base system for monolithic manhole bases and Perfect Pipe equipment for concrete-plastic composite pipe.

With this latest investment, Northwest Pipe Company strengthens its position as a leader in durable, high-quality infrastructure solutions, delivering innovative products to meet the evolving needs of the water and wastewater industry.

About Schlüsselbauer Technology - Schlüsselbauer is a leading innovator in machinery construction based in Gaspoltshofen, Austria. Since 1964 the company has developed, produced and assembled ready-to-use machines for fully automated production of concrete pipes, pressure and jacking pipes, and a variety of other concrete infrastructure components for the global market. All are built to regional and manufacturer-specific requirements. Their company philosophy is "Technology for People" and is expressed by providing state-of-the-art systems and highly automated solutions for our customers in the concrete industry.

About Northwest Pipe Company – Founded in 1966, Northwest Pipe Company is a leading manufacturer of water-related infrastructure products. In addition to being the largest manufacturer of engineered water transmission systems in North America, the Company manufactures stormwater and wastewater technology products; high-quality precast and reinforced concrete products; pump lift stations; steel casing pipe; bar-wrapped concrete cylinder pipe; and one of the largest offerings of pipeline system joints, fittings, and specialized components. Strategically positioned to meet growing water and wastewater infrastructure needs, Northwest Pipe Company provides solution-based products for a wide range of markets under the ParkUSA, Geneva Pipe and Precast, Permalok®, and Northwest Pipe Company lines. The Company's diverse team is committed to quality and innovation while demonstrating its core values of accountability, commitment, and teamwork. The Company is headquartered in Vancouver, Washington, and has 13 manufacturing facilities across North America. Please visit www.nwpipe.com for more information.

Contact:
Aaron Wilkins
Chief Financial Officer
Northwest Pipe Company
360-397-6294 • awilkins@nwpipe.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/northwest-pipe-company-expands-capacity-with-new-precast-concrete-pipe-plant-in-utah-302406186.html

SOURCE Northwest Pipe Company

FAQ

What new manufacturing capabilities does NWPX's Salt Lake City facility offer?

The facility features the Exact 2500 automated drycast system, MBK Cage Welding Machine, Advanced Concrete Technologies Batch Plant, and Transexact Crane for efficient precast pipe production.

How will the new Exact 2500 system impact NWPX's production efficiency?

The system increases production capacity with fewer operators, enables rapid pipe size transitions, and features automated handling for improved efficiency and consistency.

What is the size of NWPX's new Salt Lake City manufacturing facility?

The new facility is housed in a 41,000-square-foot building at Geneva Pipe and Precast.

How is NWPX expanding its presence in the Utah market?

NWPX has installed multiple Schlüsselbauer systems across Utah, including the new Salt Lake City facility and previous installations at their Orem plant.