NEW YORK Vallourec SA held the official opening of its new small-diameter oil country tubular goods (OCTG) mill in Youngtown, Ohio, June 12.
"With this new pipe mill, we are able to participate even more actively in the development of shale hydrocarbons in North America with an offer that responds to all of our customers needs," chairman Philippe Crouzet said in a statement.
The mill, which started up last November, cost $1.05 billion and has an initial production capacity of 350,000 tonnes annually, Vallourec said. The mill specializes in 2⅜- to 7-inch diameter tubes.
Vallourec expects output of about 200,000 tonnes this year (amm.com, Feb. 21)
"The large number of wells and the use of horizontal drilling techniques required in shale hydrocarbon production have increased demand for small-diameter tubes and premium connections," Vallourec said.
The project was significantly over budget and delayed, with Vallourec previously estimating the cost at $650 million with start-up as early as last summer (amm.com, May 10, 2012).
The Boulogne-Billancourt, France-based pipe and tube makers Youngstown operations were recently rebranded as Vallourec Star LP (amm.com, May 29).