NEW YORK Northwest Pipe
Co. has filed a $1.9-million lawsuit against ThyssenKrupp Steel
USA LLC over a shipment of steel coil that was allegedly
defective, forcing the Vancouver, Wash.-based pipe and tube
maker to buy steel plate from a third party instead.
According to the original
complaint filed April 8 in Clark County Superior Court in
Washington, Northwest Pipe ordered 2,285 tons of X70-grade
steel from ThyssenKrupp in March 2012 to spiral-weld
custom-made water transmission pipe for a customer order.
However, the Calvert, Ala.-based steelmaker allegedly delivered
steel that exceeded the requested yield strength and had "flat
spots," making it unsuitable for use in the pipe, according to
Representatives of ThyssenKrupp
allegedly admitted after an inspection that the issue with flat
spots was a "serious one" and provided 400 tons of replacement
coils, according to the filing. However, these allegedly also
had flat spots and exceeded the specified strength of steel,
according to the complaint.
Under pressure to fulfill the
order on time, Northwest Pipe said it was forced instead to buy
steel plates from a third party that could not be
spiral-welded, increasing the cost of making the pipe for the
ThyssenKrupp denied a claim by
Northwest Pipe for the cost of the defective steel, the
complaint alleges. Northwest Pipe has not been able to use or
sell the defective steel in the meantime, according to the
The case has since been moved to
federal District Court in Washington, court documents show.
ThyssenKrupp and Northwest Pipe declined to comment.