8
Tube ProducTs InTernaTIonal March 2013
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 Uˇgur, 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
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