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
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
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).