Tenaris has unveiled its $1.8 billion state-of-the-art seamless pipe mill in Bay City, Texas.
“TenarisBayCity shows our commitment to domestic manufacturing, competitively supplying the US 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.”
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.
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.
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.
