NEW YORK Friedman Industries Inc. is planning to build a $9.2-million pipe-threading facility near its tubular products division mill in Lone Star, Texas, a company source told AMM.
Houston-based Friedman has already purchased 25 acres of land near its tubular products division and aims to buy an additional 15 acres from affiliates of U.S. Steel Corp., Pittsburgh, for the expansion, it said in a statement.
The facility will also include testing and inspection equipment.
"There seems to be a decent bit of drilling activity going on in both the Eagle Ford and Permian Basin," the source said, which is "boosting local demand for finished oil country tubular goods (OCTG)."
The facility will operate as part of the tubular products division, which operates two mills that produce 2⅜- to 8⅝-inch outside diameter electric-resistance welded pipe.