TPT March 2013

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12 March 2013
Industry News
A new player in the US
OCTG market
TURKISH steel pipe manufacturer
Borusan Mannesmann will invest
US$150mn in the United States to
establish a steel pipe manufacturing
plant to cater to the energy sector. After
supplying the US market with pipes
used in the energy sector for several
years, Borusan Mannesmann now
aims to become a local manufacturer in
order to be closer to the market and its
customer base. A pipe manufacturing
plant with an annual production capacity
of 300,000 tons will be established,
focusing its output on OCTG and ERW
line pipes. The target revenue for the
US-based company is estimated at
US$500mn.
Scheduled to start production by mid-
2014, the plant is designed to produce
the thick-walled and high-strength pipes
suitable for state-of-the-art, advanced
OCTG technology used in shale gas
production. The decision on the location
of the investment is not yet finalised,
but Texas and Oklahoma are the
leading states to attract the investment
through their incentive programmes.The
facility will be built on nearly 125 acres
of land and will provide 350 people
with employment when it becomes
operational.
Agâh Uğur, Borusan Holding
Group CEO, commented, “Borusan
Mannesmann is among the leading
players of steel pipe market in Europe.
One of its top goals is to become a
global player in the pipe industry. This
investment is not only a way to insert
Borusan Mannesmann into the US
market; it is also the first step to becoming
an international manufacturer.”
Board chairman Semih Özmen added,
“Investing in a product that requires
the use of advanced technology such
as OCTG pipes requires significant
know-how and expertise and our new
CEO, Buddy Brewer, is among the few
individuals with the experience and
knowledge to carry this through. Not
only that, Borusan Mannesmann is
among the few firms with the strength to
make such an investment.”
Borusan Mannesmann has realised
many oil and natural gas pipeline
projects in Turkey, Central Europe and
North Africa. The Elba Express and Line
300 natural gas pipeline projects brought
the company prestige in the US market,
and over the last three years it has
become one of the largest international
companies that exports to the United
States the pipes used in oil and natural
gas exploration and extraction.
Borusan Mannesmann – Turkey
Fax: +90 212 293 69 60
Email:
Website: