Augusta Industries’ Allen Lone on leak detection technology and services for the oil and gas industry
Allen Lone, President, CEO, Director of Augusta Industries Inc. (TSXV: AAO) (“Augusta”) in an interview with InvestorIntel Senior Editor, Jeff Wareham discuss their two business units, FOX-TEK Canada Inc. (“FOX-TEK”) and Marcon International Inc. (“Marcon”), which both focus on maintenance repair and operations of oil and gas pipelines. FOX-TEK concentrates on leak detection, corrosion monitoring, micro cracking and bending, stress and strain in gas and oil pipelines. Marcon is involved in the industrial supply of equipment and parts procuring for clients in the oil and gas industry and the U.S. government agencies. Both Marcon and FOX-TEK operate under Augusta. Allen states though the oil and gas industry is tough, pipelines still have to operate. As Augusta focuses on the detection side of monitoring leaks, there will always be a need for their products and services. Allen then goes to explain what shareholders can expect to hear next from Augusta.
Jeff Wareham: Allen you have got a pretty complicated story. What should investors be focusing on with your business?
Allen Lone: I will start off by simplifying Augusta Industries as a holding company with two business units, FOX-TEK Canada Inc. and Marcon. FOX-TEK concentrates on leak detection and corrosion monitoring and micro cracking and bending, stress and strain on pipelines. Marcon is a contractor mostly and predominately with the U.S. government doing sales and services.
Jeff Wareham: The oil and gas industry has been a focus in the past and it has been a tough place to be for the last few years. Is that part of what prompted the move into Marcon?
Allen Lone: Marcon has been around for 25 years. That is based on oil and gas really initially and then turned into U.S. government contracting. The industry is tough, but we are in maintenance repair and operations more so then anything else. Pipelines still have to operate, oil has to flow and we are on the detection side monitoring leak detection and so on and that you always have to have a need for that.
Jeff Wareham: You have announced changes in corporate structure recently. What was the rationale for that?… to access the complete interview, click here
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