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Tubi (ASX:2BE) opens third production plant in Florida
  • Pipe manufacturer Tubi (2BE) has announced the first commercial production run at its new plant in Bartow, Florida
  • The plant is the company’s third production plant in the United States
  • Despite the coronavirus, Tubi’s says its operations in Florida — which primarily supply to the mining industry — are not currently experiencing material restrictions
  • This is partly because the Florida operations qualify as an essential service
  • Tubi shares are grey at market open, trading for 10 cents each

Pipe manufacturer Tubi (2BE) has announced the first commercial production run at its new plant in Bartow, Florida.

Tubi manufactures high-density polyethylene (HDPE) pipe, which is used for water, irrigation, oil and gas, mining, and infrastructure. The company’s newest plant is producing long length and standard length pipe for local customers.

Plant 5003 is the company’s second production plant in Florida, and the third in the United States.

5003 is located alongside Tubi's other Florida plant, Plant 5002. By placing both pipe plants side-by-side, Tubi has lowered both facilities electricity costs, reduced maintenance, and lowered supervisory and labour costs.

As a result, Tubi says its Florida plants have over 15 per cent more production capacity than Plant 5000, located in Odessa, Texas.

Now, Plant 5003 has been successfully commissioned and is now operational.

Tubi’s CEO, Marcello Russo, welcomed the opening of the new plant.

“The commissioning of our second plant at the base site in Bartow, Florida marks the ongoing successful execution of Tubi’s strategy," Marcello said.

“The ability to move multiple plants to a new site and quickly begin producing for a diverse client mix underscores the differentiation of our operations - our nimbleness, our speed to market, the quality of our product, and our manufacturing capability," he continued. “We are excited to continue to attract and work with significant clients in the industry whilst servicing the region."

“The successful execution of our short-term strategy (successfully moving and commissioning two plants in Florida) has proven our innovation and our strong-growth trajectory — all this through some difficult operating challenges presented by COVID-19,” he added.

Despite the coronavirus, Tubi has not reported any material operating restrictions to its activity in Florida. The company’s HDPE pipe production in that state primarily supplies the mining industry. As such, it satisfies the criteria for exemption from business and social restrictions.

For the duration of the COVID-19 pandemic, Tubi’s Florida operations classify as an essential service, and will continue to keep up production,

Tubi currently leases Plant 5003 from a related party. The company has the option to acquire the plant at cost before February next year.  

Tubi shares are grey at market open, trading for 10 cents each at 10:18 am AEST.


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