NEW YORK Alita USA is planning to spend $120 million to build a welded oil country tubular goods (OCTG) mill in the United States capable of producing 150,000 tonnes of finished product annually, according to president and chief executive officer Ali Hosseini.
The mill will be able to make L80, N80 and P110 grades, he said at the Steel Success Strategies XXVIII conference in New York sponsored by AMM and World Steel Dynamics Inc.. Englewood Cliffs, N.J.
The company, a subsidiary of Dubai-based trading company Alita Trading DMCC, is in final negotiations with two states on the location for the mill, Hosseini said. He declined to comment further until negotiations are finished.
One importer told AMM on the sidelines of the conference that the project made sense in light of where growth in the energy tubular industry is expected.
Were optimistic about the U.S. market, he said. All other areas are dead.
However, one trader said he was skeptical whether demand will be able to keep up with growing supply.
Im shaking my head, he said of the new capacity being planned by a growing number of companys in OCTG.