Southern Tube is a heat treat and threading operation, and its acquisition will allow Boomerang Tube to expand its capacity and product offerings, Boomerang said in a statement.

“Although a number of facilities have come available over the past few years, until now, Boomerang Tube had not found assets that would help it move forward with its core mission to be the most responsive supplier of OCTG products in the business,” said John Fontana, chairman of Boomerang Tube. “The combined company is positioned to bring an even greater range of OCTG products to our customers who are seeking our quality domestic-sourced steel tubing,” he said. 

Boomerang is acquiring the business from Nippon Steel & Sumitomo Metal Corp., which had bought it in 2012 for the equivalent of US$43 million.  

Boomerang said the acquisition will allow it to process overflow production from its Liberty, Texas, plant and increase its finished alloy tube capacity to almost 400,000 tons per year. It also said it can use Southern Tube to handle limited third-party OCTG processing. 

The operation includes a Danieli soaking furnace and Olympus ultrasonic inspection and advanced threading capabilities.