Steel/Tube GmbHs oil country tubular goods (OCTG)
facility in Louisiana will be capable of producing about
320,000 tons annually and cost about $975 million when both
phases of the project are completed.
That is up from a
prior estimate of about $900 million. "The figure of $900
million we communicated at the announcement ceremony was rather
a ballpark estimation. With the project progressing, we are by
now able to give a more precise figure," a Benteler Steel/Tube
spokeswoman told AMM via e-mail.
The facility will
create about 1,000 construction jobs, 675 permanent jobs and is
expected to lead to a cumulative economic impact on northwest
Louisiana of $16.2 billion over the next two decades.
"With more than 25
percent of our steel and tube products already flowing into the
United States and demand expected to increase, this new Caddo
Parish plant is poised to play a critical role in supporting
the U.S. domestic energy industry," Benteler Steel/Tube
president and chief executive officer Matthias Jaeger said in a
The company officially
broke ground on the project Sept. 16, although a port executive
said work on the site began earlier (
amm.com, Aug. 2).
The first phase of the
project, a seamless hot-rolling tube mill (
amm.com, Oct. 26), is expected to be completed by
the end of 2014 and operational in the third quarter of 2015.
The second phase, which calls for the addition of an
(amm.com, Nov. 7), is due to be opened in 2020,
Louisiana Gov. Bobby Jindal said in a statement on his
analysis of the U.S. OCTG market shows "strong demand through
2035 as the nation reduces energy imports and increases
domestic production," he added.
Output from the
facility is destined for Illinois, Indiana, Ohio and Texas, as
North American seamless OCTG capacity now focuses on Alabama,
Ohio, Pennsylvania and Mexico, and will be used in oil and gas
exploration and transportation, power generation and mechanical
selected the Port of Caddo after a search that covered 13
states and more than 100 potential sites, with the facility
being "one of the largest manufacturing investments in the
history of northwest Louisiana," according to Jindal.
The company, a
unit of Salzburg, Austria-based Benteler International AG, has
four sales offices in North America.
incentives that included performance-based grants totaling
$57.4 million to reimburse site development, infrastructure and
equipment costs incurred by the port and the company over the
next few years of construction and operations; a
performance-based grant of $12.75 million to reimburse certain
relocation and internal training expenses; and the development
of a center for advanced manufacturing and engineering
technology on the campus of Bossier Parish Community College,
according to Jindal.
partners contributing to infrastructure improvements for the
project include the Red River Waterway Commission ($6 million),
the Port of Caddo-Bossier ($3 million) and the Caddo Parish
Commission ($2.6 million).