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Benteler Steel/Tube Breaks Ground on U.S. Facility

09/17/2013 - On 16 September 2013, Louisiana Governor Bobby Jindal and Benteler Steel/Tube marked the beginning of the construction on the company’s new hot rolling seamless steel tube mill in Caddo Parish, La., its first manufacturing facility in the United States.

The Northwest Louisiana site was chosen from more than 100 possible locations in 13 states due to its proximity to the North American oil and gas production market and the existence of a skilled local workforce.
“Benteler has seen the quality of Louisiana’s workforce, and the state’s growing role in the expanding U.S. domestic oil and natural gas production industry,” said Governor Jindal. “Investments like Benteler’s bring high-paying, skilled jobs to our state, as well as continuing education and training programs that will ensure our ability to continue attracting world-class companies to Louisiana.”
Governor Jindal also noted the strong local effort by such groups as The Port of Caddo-Bossier, The Red River Waterway Commission, the North Louisiana Economic Partnership, and others to bring the Benteler project to Caddo Parish.
The Benteler facility will create more than 1,000 construction jobs, numerous indirect jobs with suppliers and service providers to the plant, and estimated 675 full-time jobs at full production capacity.
“This new manufacturing facility — our first in the U.S. — is an important part of our global growth strategy,” said Matthias Jaeger, President and CEO Benteler Steel/Tube GmbH. “With more than 25% of our steel/tube products already flowing into the United States, and demand expected to increase, this new Caddo Parish plant is poised to play a critical role in supporting the U.S. domestic energy industry.”
Jaeger said the construction is on track to be completed in late 2014, with manufacturing operations beginning in the second half of 2015.
The facility — a total investment of approximately US$975 million — will be built in two phases. The first phase is a hot-rolling tube mill, along with several finishing lines, for the production of seamless tubes. Phase 2 includes building an electric arc furnace for producing high quality steel on-site. The final finished facility will encompass more than 1.35 million square feet and be capable of producing up to 320,000 tons of steel tubes annually.
A new, state-of-the-art training facility is also being built on the campus of Bossier Parish Community College, featuring specialized manufacturing technology equipment and programs designed initially to meet Benteler’s manufacturing skills needs. Once the Benteler plant is operational, the facility will be become a regional hub for providing advanced manufacturing support and training for other companies.
Benteler Steel/Tube is a specialist in the manufacturing and processing of seamless hot rolled steel tubes, and seamless cold-drawn precision steel tubes, serving international customers in the automotive, OCTG/line pipe, heat transfer, hydraulics/precision engineering, and construction sectors. Exploratory drilling requires high-quality steel tubes that can withstand immense stresses, and Benteler’s product portfolio includes a range of steel tubes that meet the extreme requirements in energy exploration.
Benteler Steel/Tube is a business unit of the global Benteler Group, which is headquartered in Salzburg, Austria. Founded in 1876, the company is proud of its more than 135-year history of success. The Benteler Group employs a total workforce of 30,000 employees at 170 locations in 38 countries. Benteler Steel/Tube, headquartered in Paderborn, Germany, specializes in manufacturing and processing of seamless hot-rolled steel tubes and seamless cold-drawn precision steel tubes. There are four Benteler Steel/Tube sales offices located in North America, including headquarters in Houston, Texas.