PITTSBURGH Bri-Chem Corp. has sold its steel pipe manufacturing and distribution business to a U.S.-based steel company.
The Edmonton, Alberta-based company announced the sale but did not reveal the buyer of Bri-Steel Manufacturing, and a company spokesman said he was waiting for confirmation on the new owner.
But a source at Bri-Steel said that Houston-based Integris International Inc. was said to be the new owner. State records indicate the company operates as Integris Alloy Pipe & Fittings Inc. as well as U.S. Metals Inc. The company could not be reached for comment, but its website indicates it supplies specialty grades of pipe, heater tubes, valves, fittings and flanges.
The deal marks Bri-Chems complete exit from the steel pipe business and enables it to focus on growing its drilling fluid market footprint. "We do not believe that the value of our North American leading wholesale drilling fluids market position is being adequately reflected in our stock price," Bri-Chem chief executive officer Don Caron said. "By monetizing the steel pipe assets, we will be able to unleash the growth potential that resides within our market-leading drilling fluids markets."
Bri-Chem commissioned its Edmonton seamless pipe mill in 2011 (amm.com, June 27, 2011). It is capable of producing 36,000 tons per year of both welded and seamless pipe.