Turkey’s leading steel pipe manufacturer, Borusan Mannesmann, will invest $150 million in the United States to establish a steel pipe manufacturing plant to cater to the energy sector. This plant is set to start production in 2014 and will make Borusan Mannesmann a global player in the industry.
Borusan Mannesmann is one of the foremost manufacturers in the European steel pipe industry. With a little less than half of its exports already destined for the United States, the company aims to be closer to the U.S. market and its customer base.
The company will build a pipe manufacturing plant with an annual production capacity of 300,000 tons with target revenue estimated at $500 million.
Scheduled to start production by mid-2014, the plant will produce thick-walled and high-strength pipes suitable for shale gas production. Final decision on the plant’s location is between Texas and Oklahoma. The facility will be built on nearly 125 acres of land and provide 350 jobs when it becomes operational.
“Borusan Mannesmann is among the leading players of steel pipe market in Europe,” said Agâh Uður, Borusan Holding Group CEO. “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 U.S. market; it is also the first step to becoming an international manufacturer.”
To date, Borusan Mannesmann has realized 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 U.S. market. Over the last three years, Borusan Mannesmann has become one of the largest international companies that export pipe to the United States for use in oil and natural gas exploration and extraction.
Borusan Mannesmann has increased exports from $90 million in 2009 to $184 million in 2012, with 40 percent of its exports sent to the United States.