NEW YORK Tenaris SA aims
to complete its new seamless oil country tubular goods (OCTG)
mill in Bay City, Texas, by mid-2016, a top executive said.
"We have already filed the
permit applications with TCEQ (the Texas Commission on
Environmental Quality). We understand that the process will
take not less than six months to about nine, and were
ready to start construction immediately after the proper
authorizations are in place," Tenaris North American
president Germán Curá told attendees at a recent
town hall meeting in Bay City, according to a recording.
The plant, targeting OCTG
capacity of 600,000 tonnes a year, will have heat-treatment and
premium threading facilities but no hot end.
"This plant would not produce
steel. The steel bars from which we would produce the pipes
would come from a facility we have in Mexico," Curá
said, adding that Tenaris will build a rail terminal in the
nearby coastal town of Freeport, Texas, to ship the raw
materials to the plant.
A company spokeswoman
didnt respond to requests for additional comment.
Tenaris investment in the
United States was partly due to the shale gas boom, Curá
"It is driven by the new natural
gas deposits that we have found," he said, adding that they are
once again making the United States an attractive manufacturing
base. "Were a company that has an existing presence in
China and one that has decided to invest in the States. We
dont believe that we need to go to China to produce our
The cost of the plant has now
been set at the top of a previously announced range of $1.3
billion and $1.5 billion (
amm.com, Feb. 15).
The lower figure hadnt
"accounted for the infrastructure that we intend to build, the
centers, the service buildings and what not," Curá said,
adding that Tenaris first U.S. seamless operation will be
very similar in design to its seamless mill in Veracruz,
The facility will be built on a
1,500-acre site, attesting to the Luxembourg-based tube and
pipe makers long-term commitment to the area, he
"We build; we dont sell.
This is an operating company, not an investment house,"
Curá said, noting that the new mill will be equipped
with the latest in environmentally friendly technology.
"The design of the plant is
accounting for technology that would surpass the thresholds
established by both the (U.S. Environmental Protection Agency)
and the ... TCEQ," he said.
Bay City offered a "nice
incentive package" to the company to attract the mill, though
it was "much, much less than our competitors," Matagorda County
Judge Nate McDonald said during the meeting. "Tenaris is not
looking for an incentive bonanza but theyre looking for a
logistic and societal fit, and Matagorda County represents that