Niche Leader Has Bright Future

Article Excerpt

ShawCor is a leader in the market for products and services to control and detect oil and gas pipeline corrosion. It’s now using its strong position in this niche to expand in a number of growing markets, including Alberta’s oil sands, North American liquefied natural gas projects, untapped international markets and new technologies. SHAWCOR LTD. $35 (Toronto symbol SCL.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 71.7 million; Market cap: $2.5 billion; SI Rating: Average) makes sealants and coatings that protect onshore and offshore oil and natural gas pipelines from corrosion. It also inspects and repairs pipelines. These businesses account for about 85% of ShawCor’s revenue. The remaining 15% comes from making industrial equipment such as drilling equipment, electrical wires and protective sheaths. The Shaw family controls 89% of the class ‘B’ multiple voting shares. ShawCor is a leader in most of its niche markets. This, plus its established reputation and a big rise in new pipeline construction, pushed up…