Mannesmann is considering an industrial park in Texas for its
new 300,000-ton-per-year energy tubulars mill, according to the
company and documents filed with state and local
The same documents also reveal new details about the
$150-million project, including that it might include a spiral
mill and coating facility.
Borusan Mannesmann previously
said it was mulling sites in Oklahoma and Texas for its new oil
country tubular goods (OCTG) and line pipe mill (
amm.com, Jan. 2). The company will purchase raw
materials for the plant from both domestic and international
sources, a company spokesman said.
The Istanbul, Turkey-based
steelmaker said it is eyeing a $10.9-million site in the Cedar
Crossing Industrial Park in Chambers County next to Baytown and
about 35 minutes from Houston, according to documents filed
with the Goose Creek Consolidated Independent School
"The plant at the Cedar Crossing
Industrial Park in Texas is one of the candidate locations for
the plant. There are a few other potential locations for the
facility," the company spokesman said in an e-mail to
AMM, declining to disclose those locations. Logistics
advantages, negotiations with property owners and incentive
programs are all factors in the site selection process, he
Cedar Crossing is one of the
largest industrial parks in the world, with freeway, rail and
port access, including to the Houston Ship Channel, according
to its website.
Borusan Mannesmann is seeking a
value limitation on the property because incentives offered by
local governments will be a key factor in its site decision,
according to the documents filed with the school district. The
Commissioners Court of Chambers County has approved a tax
abatement or equivalent funding for Borusan Mannesmann Pipe
U.S. Inc., according to the minutes of a Nov. 13 meeting.
Borusan Mannesmann plans to
spend $148 million on the facility, including nearly $11
million for land, $37 million on buildings and property
improvements and $100 million on machinery, according to the
school district filing. But as much as $290 million could be
spent over the next 10 years, with half related to construction
and equipment purchases over the next two to three years,
according to the documents signed by Borusan Mannesmann Pipe
U.S. chief financial officer Ari Kagan.
Construction on the facility is
expected to begin in February and be completed by October, the
documents said. Hiring would begin in August, with the facility
expected to be fully operational by February 2014.
The project is expected to
include corporate offices and a production facility, as well as
heat-treat, hydro-testing and threading buildings, the
documents said. Future expansions are all possible, potentially
including a spiral mill and a coating facility, according to a
schematic of the facility.
Borusan Mannesmann already said
it plans to make high-quality energy tubulars to serve
increasing requirements from the U.S. shale drilling industry.
But the company appears perhaps even more bullish on the
outlook for the U.S. energy tubulars market in the recently
Rising shale oil and gas
production "will result in the U.S. soon becoming a
self-sufficient country for its energy requirements," Borusan
Mannesmann said, boosting demand for OCTG. "Currently, U.S.
production of oil country tubular goods is not enough to cover
demand, and thus a considerable amount of these products are