In a statement, Borusan Mannesmann said the acquisition expands its U.S. footprint and will help to push its capacity here to as much as 1 million tons, with revenues of approximately US$1 billion. 

The company has operated a facility in Texas since 2014 and is preparing to open a second one in the state. According to Borusan Mannesmann, Berg has approximately 550,000 tons of pipe-making capacity through two facilities, a longitudinal-weld facility in Alabama and a spiral-weld, large-diameter facility in Florida. 

Borusan Group chief executive Erkan Kafadar said the goal of the acquisition is to give the company a strategic position in the large-diameter market. 

“Having championed remarkable growth in the energy sector recently, the company stands out as the supplier of all major pipeline projects in the United States, a country that has evolved from its role of an importer to that of an exporter, which holds great potential,” he said. 

Berg was owned by Europipe GmbH, a 50-50 joint venture between Salzgitter Mannesmann GmbH and AG der Dillinger Hüttenwerke. 

Salzgitter AG chief financial officer Burkhard Becker said the divestment is in keeping with the company’s Salzgitter AG 2030 strategy, which is attempting to align the company with a circular economy. 

“This transaction marks another step in our active portfolio management that we are pursuing under our ‘Salzgitter AG 2030’ corporate strategy. In accordance with the best owner principle, the deal opens up the prospect of optimized strategic development opportunities for Berg Pipe and its employees under the leadership and management of Borusan Mannesmann,” said Becker. 

“We are delighted that Borusan Mannesmann has chosen Berg Pipe in its move to expand its market position in the U.S.”