Tenaris unveils seamless pipe mill in Bay City, Texas

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Dec 12, 2017, 14:42 ET

HOUSTON, Dec. 12, 2017 /PRNewswire/ -- Tenaris unveiled its $1.8 billion state-of-the-art seamless pipe mill in Bay City, Texas, yesterday before local, state and federal representatives, including U.S. Department of Energy Secretary Rick Perry and Texas Governor Greg Abbott. Tenaris customers, community members and employees also joined the ceremonial launch.

Honored attendees of the Dec. 11 ceremonial opening of TenarisBayCity included Bay City Mayor Mark Bricker, Matagorda County Judge Nate McDonald (back left to right), U.S. Energy Secretary Rick Perry, Texas Governor Greg Abbott, and Tenaris Chairman & CEO Paolo Rocca (front left to right).

Tenaris Chairman & CEO Paolo Rocca welcomes customers, community members, employees and dignitaries to the launch of TenarisBayCity, a cutting-edge pipe manufacturing facility in Bay City, Texas, located near many of the country’s thriving shale plays.

The floor of Tenaris’s new, $1.8 billion, state-of-the-art seamless pipe mill. TenarisBayCity, which has the capacity to produce 600,000 tons of OCTG annually, was designed with technological innovation and worker safety at the forefront.

"TenarisBayCity shows our commitment to domestic manufacturing, competitively supplying the U.S. oil and gas industry," said Paolo Rocca, Tenaris Chairman and CEO. "This mill, which incorporates the most advanced technologies available worldwide, will lead our domestic industrial and service network dedicated to the U.S. market," he added.

U.S. Energy Secretary Rick Perry was Texas Governor when he first announced the greenfield investment in 2013. Today, he returned to the podium in show of support for the project that has generated more than 600 jobs and more than 1,500 during the construction phase.

"Wherever Tenaris pipes go, jobs will follow. This company is fulfilling the promises it has made," said Secretary Perry. "It is my hope and my expectation that Tenaris will continue to play a role in America's energy revolution and manufacturing revival."

The 1.2 million square foot mill incorporates a high level of automation and cutting edge technologies into its production of seamless pipe. The facility is also the company's most environmentally efficient mill, seeking LEED certification.

"As a leading supplier of pipes, casing and tubing, Tenaris has played a significant role in the oil and gas surge here in Texas," said Governor Abbott. "With this $1.8 billion investment, Tenaris has not only built the most technologically advanced pipe manufacturing facility in the world, but they have also created hundreds of new jobs in Texas. I thank Tenaris for all they are doing for the Bay City community and for helping keep Texas the most exceptional economy in the country."

Tenaris's mill in Bay City is strategically located near key shale plays and reaffirms the company's commitment to the U.S. market and domestic manufacturing. The facility is a direct response to the resurgence in the U.S. energy industry and the opportunity to shorten and make the industry more competitive through domestic manufacturing of seamless pipes as a key input for drilling shale wells.

U.S. Secretary of Commerce Wilbur Ross, who was unable to attend the event, sent a video message congratulating Tenaris for the investment, which he said will have a huge impact on the community. Secretary Ross added the administration will "vigorously defend this investment and others against unfair trade practices, such as dumping and illegal subsidies."

Tenaris's new mill has the capacity to produce 600,000 tons of OCTG, annually, and is a critical piece of infrastructure driving the company's services oriented strategy known as Rig Direct™. The direct-to-customer model synchronizes customers' drilling operations with pipe manufacturing, delivering products and services when needed, as needed. To date, nearly two-thirds of Tenaris's oil and gas customers in the U.S. are using Rig Direct™.

OCTG produced at the seamless pipe mill in Bay City, Texas, will be shipped directly to customer rig sites or stored at Tenaris service centers in Bay City, Freeport, Midland or Oklahoma.

The Bay City investment was not just in company but in community. Tenaris has invested nearly $1.8 million in education in Matagorda County. This includes nearly 30 scholarships and awards as well as its partnership with the Wharton County Junior College for the manufacturing technology program.

"We believe an industrial project like ours is strong if it grows with the community," added Rocca. "This is what we have done in every location where we operate and live."

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Tenaris is a leading global manufacturer and supplier of steel pipe products and related services for the world's energy industry and other industrial applications. Our customers include most of the world's leading oil and gas companies and our revenues amounted to US$4.3 billion in 2016. Employing around 22,000 people worldwide, we operate an integrated network of steel pipe manufacturing, research, finishing and service facilities with industrial operations in the Americas, Europe, the Middle East, Asia and Africa and a direct presence in most major oil and gas markets.

SOURCE Tenaris