NEW YORK Tenaris SA has chosen Texas as the location for its new $1.3-billion to $1.5-billion seamless pipe mill, the company announced Feb. 15.
The 1-million-square-foot facility, which will be located in Bay City, Texas, will have an annual production capacity of 600,000 tonnes, Tenaris North American president Germán Curá said during a news conference.
"This announcement ... is significant. Were ready to invest $1.3 (billion) to $1.5 billion, which ... is a very strong statement to a variety of things: Its a strong statement to the development of the domestic energy industry; its a strong statement to the renewed growth of the manufacturing sector in North America and Texas; (and) its a strong statement to expanding the job base. Were confident that we made the right decision to build here," he said.
Curá confirmed that the mill, which will have heat-treatment and premium threading facilities, is expected to begin operations in 2016.
Luxembourg-based Tenaris first announced plans for a U.S. seamless pipe mill in June (amm.com, June 21), and in the fall said it was deciding between Louisiana and Texas as a location for its facility (amm.com, Oct. 26).
Texas is providing some $6 million through the Texas Enterprise Fund to help finalize the deal, Gov. Rick Perry said Feb. 15. The legislature created the fund in 2003 to help ensure the growth of Texas businesses and create more jobs through the state, and has invested more than $493 million to date.
The plant is expected to employ some 600 workers with average salaries of $66,000 annually, according to Curá, adding that his team is currently completing permits at local state agencies. Construction will begin once all permits are issued, he added.
The announcement from Tenaris, which already has a strong presence in the welded oil country tubular goods market in the United States, comes at a time when many other mills are also expanding capacity domestically.
Chinas TPCO America Corp., which plans to construct a $1-billion, 500,000-tonne-per-year-capacity seamless pipe facility in nearby Corpus Christi, Texas, said in November that it intends to have its pipe and end-finishing operations up and running by early summer (amm.com, Nov. 21).