Tenaris Embarks on US Expansion

Tenaris S.A. reported Thursday that it has acquired U.S. steel pipe manufacturer IPSCO Tubulars, Inc. from PAO TMK for nearly $1.1 billion in cash.
“The IPSCO acquisition marks a new chapter in our U.S. expansion and represents another milestone in Tenaris’ history,” commented Tenaris Chairman and CEO Paolo Rocca in a written statement. “Together, we are uniquely positioned to serve the U.S. oil and gas industry, with an extensive geographic deployment throughout North America and an unmatched product range.”
Tenaris, whose U.S. industrial and service network has been concentrated in the South, stated that adding IPSCO’s facilities will help it to make inroads into the Midwest and Northeast. The firm pointed out that IPSCO’s steel shop in Koppel, Pa., represents Tenaris’ first such facility in the U.S. and will provide vertical integration through domestic production of a relevant portion of its steel bar needs. Moreover, the company stated that a newly acquired Ambridge, Pa., mill adds a second seamless manufacturing facility and complements Tenaris’ seamless plant in Bay City, Texas.
According to Tenaris, it will consolidate IPSCO’s balance sheet and operations results in its consolidated financial statements starting in the first quarter of this year. Tenaris added that effective Jan. 2, 2020, it will be the exclusive distributor of TMK’s oil country tubular goods (OCTG) and line pipe products in the U.S. and Canada under a six-year master distribution agreement with PAO.
“With IPSCO, we will be able to strengthen our Rig Direct offering with shorter lead times and more responsive service capabilities,” said Rocca. “We look forward to integrating IPSCO’s team and serving our customers more efficiently.”
To contact the author, email mveazey@rigzone.com.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Is The USA Strategic Petroleum Reserve Stock Dangerously Low?
- Police to Board Valaris Rig After Worker Reported Missing
- Risk Premium Embedded in USA NatGas Vanishes
- Norwegian Tax Break Ensures Increase Of O&G Supply To Europe
- Offshore Rigs Set For Very Busy Year In 2023
- Wood Mackenzie: Global Upstream Fiscal Trends For 2023
- Fossil Fuel Profits Roar Back
- Canadian Oil Flows to Asia Surge After USA Refinery Disruptions
- EWTC Produces a Fresh Batch of Graduates
- TSC Subsea Targets Expansion Into New Markets
- Valaris Employee Reported Missing from Rig
- How Will Russia's Oil and Gas Industry Fare in 2023?
- Oil and Gas Security Trends in 2023
- USA Drops Rigs
- Texas Oil & Gas Industry Paid Record $24.7Bn In Taxes And Royalties
- Top Headlines: Is the USA Shale Boom Over and More
- Texas O&G Sector Closes 2022 With Continued Employment Growth
- Fundamentals Strong Enough for $90+ Oil Period
- ADNOC Adds HSBC, ADCB, EFG on Mega IPO Of Gas Unit
- All Eyes on China This Week
- Egypt Makes 53 New Oil And Gas Discoveries In 2022
- Valaris Employee Reported Missing from Rig
- Texas Governor Calls For Atmos Energy Investigation
- Search For Four Missing In GoM Chopper Crash Suspended
- Louisiana, Texas To Gain Thousands of Energy Jobs At Start of 2023
- Where Will WTI Oil Price Be at End 2023?
- Is the USA Shale Boom Over?
- Talos Makes Two Commercial Discoveries In Gulf Of Mexico
- Oil Cos Could Turn Wastewater Into Revenue Stream
- Gasoline and Diesel Prices Expected to Fall