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.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea