PITTSBURGH Borusan Mannesmann expects to build its new 300,000-ton-per-year pipe mill in either Texas or Oklahoma.
The $150-million plant is expected to make primarily oil country tubular goods (OCTG) and electric-resistance weld (ERW) line pipe, focusing on thick-walled and high-strength pipe for shale gas production, the Turkish steelmaker said Wednesday. It will employ 350 people once it is operational.
Borusan Mannesmann, which expects production to start in mid-2014, said it is looking to become a global player with its investment in the United States, which it previously supplied from overseas.
"This investment is not only a way to insert Borusan Mannesmann into the U.S. market; it is also the first step to becoming an international manufacturer," Borusan Holding Group chief executive officer Agâh Uğur said in a statement. He noted that it was the first Turkish company to invest in the steel pipe sector in the United States.
Borusan Mannesmann is taking a long-term view of the U.S. market, Uğur said. Better energy policies in the United States and improvements in shale drilling technology "were the factors that hastened our investment decision in this time of global recession."
Borusan Mannesmann chairman Semith Özmen said in a statement Tuesday that Buddy Brewer is the chief executive officer of the new operation.
A host of steel pipe makers have added or announced new line pipe or OCTG capacity recently, including Welded Tube of Canada Ltd., Concord, Ontario, which plans to build a facility with a production capacity of 300,000 to 400,000 tons per year in Lackawanna, N.Y. (amm.com, Oct. 31); Prolamsa Group, which plans to build a 300,000-ton-per-year tubular products mill in the southeastern United States to meet what it sees as growing demand from the U.S. oil and natural gas industries (amm.com, Aug. 16); Chicago-based JMC Steel Group Inc. (amm.com, April 4); and Vancouver, Wash.-based Northwest Pipe Co. (amm.com, April 30).
On the seamless tubulars side, Benteler Steel/Tube GmbH, the German unit of Salzburg, Austria-based Benteler Group, has announced plans to build a seamless OCTG mill in Caddo, La. (amm.com, Oct. 26); Tenaris SA, Luxembourg, has said it is close to choosing a location in either Texas or Louisiana for a planned $1.5-billion, 650,000-ton-per-year seamless pipe mill (amm.com, Oct. 26); Chinas TPCO America Corp. continues work on its $1-billion, 550,000-ton-per-year seamless pipe mill near Corpus Christi, Texas (amm.com, Nov. 21); and Frances Vallourec SA said in November it had started production of seamless tubulars at its mill in Youngstown, Ohio (amm.com, Nov. 5).