Hay River (Sep 13/04) - A major international player in the pipe-coating business has signed a memorandum of understanding with two new Hay River area partners.

On Sept. 1, ShawCor Ltd. of Toronto announced its subsidiary, Shaw Pipe Protection Ltd., signed the memorandum with Northern Transportation Company Ltd. and Naegha Zhia Inc., the corporate arm of K'atlodeeche First Nation on the Hay River Reserve.

"We believe they will be excellent partners and we're very pleased with the preliminary discussions we've had with them," says Garry Graham, ShawCor's vice-president of corporate development.

Chief Roy Fabian of K'atlodeeche First Nation welcomes the MOU and the band's involvement in the proposed pipe-coating facility.

"It's a long-term business opportunity for us," Fabian says.

The chief says it is possible the reserve may provide land for the facility.

However, he notes the MOU is an exploratory process to see how the partners can cooperate on opportunities.

Fabian says ShawCor is a good, solid company. The band is looking forward to working with it.

The parties will seek business opportunities in the NWT, initially pipe-coating for the Mackenzie Gas Project.

ShawCor previously applied for land in Hay River to build a pipe-coating facility, but none is currently available.

However, Hay River was not mentioned as the site for a pipe-coating facility during the announcement.

"Hay River is certainly a potential location," Graham says.

He also said it is too early in the pipeline process to know its exact route and where service companies will locate.

ShawCor's announcement drew a reaction from the Deh Cho Pipe Company, which has also applied for land to build a pipe-coating facility in Hay River.

Greg Whitlock, the owner of Deh Cho Pipe, said there is only enough surplus hydroelectric power from the Taltson River to build one pipe-coating plant in Hay River.

"The proposal by ShawCor to (Deh Cho Pipe) offered no long-term economic benefit to Hay River, the North or ongoing MGP activity, nor would have provided any long-term employment benefit for Northerners," Whitlock said in a news release.