NEW YORK PTC
Seamless Tube Corp., a subsidiary of PTC Group Holdings Corp.,
is investing $102 million to establish a seamless oil country
tubular goods (OCTG) facility in Hopkinsville, Ky., on the site
of its idled mechanical tubular facility, confirming previous
reports by AMM.
focus on Hopkinsville represents a shift in the companys
operations from producing more traditional mechanical tubular
products toward producing seamless steel tubes for the energy
industry ... which include high-strength tube products used in
oil and gas wells and certain other industrial applications," a
statement on Kentucky Gov. Steve Beshears website
PTC will acquire property adjacent to the site, rework the
layout of the facility and install new manufacturing equipment
for the upgrade, according to the statement.
Market sources speculated in March that the company had bought
equipment from a former Commercial Metal Co. pipe facility in
Croatia to set up an OCTG mill after PTC idled the
Hopkinsville plant, which at the time made drawn-over-mandrel
(DOM) and seamless tubing (
amm.com, March 12
The plants previous production went mainly to the
automotive industry, but the facility was shuttered because the
company had to move its operations closer to its customer base,
the statement said.
The company did not return a request for comment on the
production capacity of the new 256,000-square-foot plant, which
will create 283 jobs and receive up to $12.5 million in tax
incentives, according to the statement.
We are very pleased to be returning to Hopkinsville,
where we have a long history of working with the community to
create meaningful employment opportunities in
manufacturing, PTC Group chairman, president and chief
executive officer Peter Whiting said in the statement.
The Wexford, Pa.-based company makes DOM, electric-resistance
welding (ERW) and cold-drawn seamless tubing from eight
facilities mainly in the Midwest, according to its website.
A number of other companies are building seamless OCTG mills in
the United States, including Tenaris SA, which is establishing
a $1.5 billion facility in Bay City, Texas (
amm.com, Feb. 15
), and Benteler Steel/Tube GmbH,
which recently broke ground on a $900 million facility at the
Port of Caddo-Bossier in Louisiana (
amm.com, Aug. 2
One analyst, however, questioned whether the OCTG market would
be robust enough to soak up the additional capacity.
Demand has been on the weaker side and thats
without the new capacity, Bradford Research Inc. analyst
Chuck Bradford said, pointing to the large-diameter line pipe
market, where capacity utilization is reportedly low after
several new players entered the market over the past few years,
as a cautionary tale.
He added that billet supply might become an issue for planned
seamless mills that dont have their own steelmaking
Where are they going to get the steel? Bradford
asked. Theres only a few sources for that.