Northwest Pipe Co. is major supplier for the Southern Delivery System #ColoradoRiver

Southern Delivery System construction celebration August 19, 2011 via The Pueblo Chieftain
Southern Delivery System construction celebration August 19, 2011 via The Pueblo Chieftain

From The Denver Post (Aldo Svaldi):

Orders at the Northwest Pipe Co. plant in Denver were drying up in 2010 when bid requests started coming for a massive water project linking the Pueblo Reservoir and Colorado Springs called the Southern Delivery System.

“The start of the SDS project couldn’t have come at a better time,” Northwest’s vice president of sales Eric Stokes said.

At a cost of $841 million, the water project is the largest the region has seen in decades. Starting in 2016, it will pipe water held in the Pueblo Reservoir to consumers in Colorado Springs, Pueblo West, Security and Fountain.

“This is our water security for many years to come, 50 years into the future,” said John Fredell, program director of the water services division for SDS.

Northwest Pipe’s Denver plant won almost all the contracts to supply 50 miles of steel pipe, and the company celebrated the completion of the last piece Thursday afternoon. Northwest produced 7,000 pieces of the pipeline, each averaging 50 feet in length and 66 inches in diameter. The orders allowed Northwest’s employment in Denver to grow from 116 full-time workers to more than 231 at the peak of manufacturing.

Of about $500 million spent so far on the project, $359 million has gone to 333 Colorado businesses, including more than 75 based in metro Denver, Fredell said.

Northwest Pipe alone received about $110 million, including $23 million spent on payroll. Given that the next closest competitor was in California, Stokes said Northwest had a distinct advantage.

“Proximity was part of it,” Fredell said.

Back in 1997, Northwest Pipe, which is based in Vancouver, Wash., acquired Thompson Pipe & Steel Co., a manufacturer with Denver roots going back to the late 1800s. For decades, Thompson built pipes in the Curtis Park area that continue to help move water across much of the state. Thompson moved its plant to a 45-acre facility at 6030 Washington St., where workers continued to convert steel coil arriving by rail car into water pipes shipped out on trucks.

Once formed, the pipes are pumped full of water and pressure-tested to ensure there are no leaks. They are moved into a cavernous ⅛ – mile-long warehouse where they are rotated rapidly while concrete is poured inside to make a lining designed to last for decades. In a third building, the pipes are primed, painted and prepared for shipping.

“It is nice to know you have finished on time,” said Jason Cheng, a welder from Westminster who joined Northwest in October to work on the SDS order.

Cheng and other workers lined up to sign the last piece of pipe, undeterred as the rain poured down Thursday afternoon. Their signatures, in white ink, quickly smeared down the bright-blue pipe.

“We want the water on the inside of the pipe, not the outside,” one person commented.

From the Denver Business Journal (Cathy Proctor):

Northwest Pipe, (Nasdaq: NWPX) is based in Vancouver, Washington. Its Denver manufacturing plant had a $110 million contract to build the project’s 50 miles of pipeline to carry the water. It was the biggest contract for materials under the project.

Northwest Pipe started making its 50-foot sections of pipe for the project, each section 66 inches in diameter, in 2011.
And the last pieces are now coming off the manufacturing line and awaiting a truck for transport to the project site.

“This is one of the largest programs that we’ve seen,” said John Moore, manager of Northwest Pipe’s manufacturing plant at 6030 N. Washington St. in north Denver.

During peak production, as many as 25 trucks a day left Northwest Pipe’s manufacturing facility.
Being in Denver meant trucking costs were less and Northwest Pipe could submit a more competitive bid for the project, Moore said.

And the project meant jobs for Northwest Pipe, which ramped up to 231 people during peak production, from a low of 116 people prior to work on the project, said John Moore, the plant manager. The company currently has 131 people on staff.
Northwest Pipe, which supplies pipes to carry water and waste water, has delivered pipes to other big water providers, including Denver Water and Aurora.

More Southern Delivery System coverage here.

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