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Advanced Drainage Systems Commence Production of HDPE Pipes at New Plant

Advanced Drainage Systems, Inc. (ADS), the world's largest manufacturer of high-density polyethylene pipe, has begun production at its largest U.S. manufacturing plant to help meet the growing demand for HDPE products in highway construction projects and to better serve customers throughout the Eastern U.S.

The $12 million, 68,000-square-foot facility opening in Gloucester County, New Jersey, will bring 100 new jobs to the area and will serve ADS customers in New Jersey, New York, Pennsylvania, Delaware, Maryland and Washington, D.C.

The plant will produce HDPE pipe for use in the development of local and federal highway projects and will serve construction projects in underground drainage applications.

"We're seeing an enormous demand for HDPE pipe following the Federal Highway Administration's specification changes last year, and we want to ensure our customers continue to receive the very best in customer service," said Joe Chlapaty, president and chief executive officer of Advanced Drainage Systems, Inc. "By manufacturing pipe as close to our customers as possible, it will significantly reduce the time and cost of delivery. The combination of our on-going national expansion program coupled with new changes to regulations on Federal-aid highway projects means ADS's customers and tax payers across the U.S. will see significant savings on the increasingly expensive public infrastructure projects."

The FHWA announced new changes in 2006 to its national "construction and maintenance" regulation (Appendix A to subpart D of 23 CFR 635 – "Summary of Acceptable Criteria for Specifying Types of Culvert Pipes") applying to the use of alternative types of pipe, such as HDPE, on Federal-aid highway projects. The decision was made to ensure state departments of transportation promote greater competition within the underground drainage industry, create greater efficiency and reduce project costs.

ADS chose the Gloucester County area for its strategic geographic location and access to a skilled labor market.

"We are extremely pleased to welcome ADS into our community," said Joseph Brigandi, Freeholder for Gloucester County. "Our community will benefit from ADS's commitment to producing the highest quality water drainage products and the company's outstanding reputation for supporting the communities where it operates. In turn, ADS will benefit from our skilled work force, strong quality of life and central location to serve the Eastern U.S."

Gloucester County is the fastest growing county in New Jersey and has consistently ranked in the top 10 percent in the nation for job growth since 2003, according to Brigandi. The first public open house for the new manufacturing facility is scheduled for September 18, 2007.

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