NEW YORK Tritube USA, a subsidiary of Chinas Jiangsu Qiyuan Group, is auctioning off all the equipment at its Baytown, Texas, facility, where it made hollow structural sections (HSS) and sprinkler pipe.
A company source confirmed the auction but declined to comment further, while a spokeswoman for the Baytown-based company didnt respond to AMMs request for comment.
"They just decided to get out of the tubing business. They didnt think their investment was paying off," a domestic HSS mill source said, noting that he would be bidding on the assets.
A second HSS mill source welcomed Tritubes move. "Theres too much capacity in the steel business in general," he said.
Tritube, which had the capacity to produce 50,000 tons annually, was established in 2008 "to fill the growing demand of a reliable light-wall electric-resistant weld (ERW) tube manufacturing company," according to Jiangsu Qiyuans website. The facility was officially opened in March 2009.
The auction includes five mills capable of making ½-inch to 6⅝-inch tube, according to auction house bidspotter.com. The mills manufacturer is listed as Zhangjiagang Zhongyuan Pipe-Making Co. Ltd., also a subsidiary of Jiangsu Qiyuan.
The sale includes everything from hot-rolled coil to office chairs and forklifts, according to bidspotter.
Tritube was officially incorporated as LQY Welded Tube Inc., according to its website. The phone number listed for LQY Welded Tube is no longer in use.