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.
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
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).