Details emerge on $1.8B Bay City pipe plantDetails emerge on $1.8B Bay City pipe planthttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=119942016-02-04T06:00:00Z2016-02-04T16:25:00Z

​​BAY CITY - Luxembourg-based Tenaris S.A., a distributor and manufacturer of steel pipe geared toward the oil and gas industry, is investing $1.8 billion in a new pipe mill in Bay City.

The location is strategic in its proximity to unconventional shale plays, which generate demand for the pipe products coming out of the facility, according to Tenaris.

The mill will have the capacity to produce 600,000 tons of oil country tubular goods, which refers mainly to casing and tubing used in drilling, as well as line pipe and other pipe used in producing or transporting oil and gas.

The project is expected to be complete sometime in 2017, generating 600 direct manufacturing jobs that will eventually amount to an average annual payroll of $40 million.

In Houston alone, Tenaris already has five other manufacturing facilities, including a welded tubes mill in Conroe.

Details surrounding the new pipe mill in Bay City emerge days after the company informed the Texas Workforce Commission that it would suspend operations at its coupling facility in Houston.

Tenaris will suspend operations at the Texas Arai facility at 8204 Fairbanks North Houston Rd. on or about March 31.

The facility is part of the Maverick Tube Corp. business that Tenaris acquired in 2006 in a $3.2 billion deal. The suspension will affect 166 employees, the company told the Texas Workforce Commission, but some of those workers could be transferred to other Tenaris facilities before March 31.

Houston Business Journal
Houston-The Woodlands-Sugar Land

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