Tenaris SA (TS:US), a producer of steel pipes for the oil and natural gas industry, will build its first U.S. seamless-pipe mill in Texas at an estimated cost of $1.5 billion.
The plant in Bay City will have a production capacity of 600,000 tons a year of seamless pipe, the Luxembourg-based company said today in a statement.
The plant is expected to begin operations in 2016 and generate 600 manufacturing jobs, the company said.
U.S. Steel Corp., the largest U.S. producer of the metal by volume, shipped 1.9 million tons of pipes and tubes from its tubular segment at an average price of $1,687 a ton in 2012, it said on Jan. 29. Hot-rolled steel coil, a benchmark product used in appliances and vehicles, averaged $658.66.
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