BELLE FOURCHE, S.D. (November 20, 2012)—Pipeline Plastics, a Texas-based company, is starting construction this week on a new pipeline manufacturing facility in western South Dakota.

Pipeline Plastics held a groundbreaking ceremony Monday for the new plant, which is expected to employ as many as 40 people.

The plant will make high-density polyethylene pipe for the oil industry in North Dakota and Montana and also plans to sell pipes to cities for domestic water supplies.

South Dakota Gov. Dennis Daugaard says he is proud to welcome the company to the state.

He said the company will have a "tangible economic impact" to South Dakota.