Lakeside Steel to Add Processing Capability in Welland
02/28/2011 - Lakeside Steel announced plans to add additional thermal processing capabilities to its Welland, Ont., Lakeside Steel facility, enabling it to ship fully end-finished and normalized tubing products to oil country customers in the U.S, and Canada.
Lakeside Steel Inc. announced plans to add additional thermal processing capabilities to the Welland, Ont., facility of its wholly-owned subsidiary, Lakeside Steel Corp.
This refurbishment will enable the modernized facility to ship fully end-finished and normalized tubing products to oil country customers in the United States and Canada. Normalization processing involves the application of heat treatment to products in order to realign grain structure, enhance properties and strengthen the product. Lakeside has already begun refurbishing equipment to enable this value-added processing for its tubular products.
"Thermal processing treatment such as product normalizing is a key constraint in this industry", said Ron Bedard, President and Chief Operating Officer of Lakeside Steel. "This project will help Lakeside produce higher value-added product from our Welland facility."
Currently, Lakeside ships its tubing products to an outside processor for upsetting and normalizing, before those products can be threaded, coupled and shipped to customers. Addition of the new processing capability, along with Lakeside’s recently added upsetting and threading equipment, allows it to keep the entire operation in-house.
"Processing capacity for OCTG products is in short supply across the continent and therefore normalized product is at a premium," added Bedard. "Bringing this function in-house will keep us competitive while maintaining quality and certainty of supply for our customers."
Once fully operational, the existing stretch reduction mill and upset and thread line along with the new processing equipment will enable Welland to ship its fully normalized tubing directly to North American customers, thereby reducing freight costs associated with off-site processing.
Lakeside noted that it would be testing production to ensure it meets the American Petroleum Institute's (API) strict specifications.
Initially, the Welland operation will process 2.375- and 2.875-inch tubing, from its stretch reduction mill. Later, the processing is expected to accommodate 4- and 5-inch casing from Lakeside's 2- to 8-inch Mill. Lakeside's stretch reduction mill is one of only a handful of such mills in North America that can manufacture the high-pressure products required for deep and directional drilling operations.
Lakeside Steel is the parent company of Lakeside Steel Corp. Lakeside, located in Welland, Ont., is a diversified steel pipe and tubing manufacturer with a focus on manufacturing and upgrading Oil Country Tubular Goods. Lakeside's list of customers includes large oil and gas end users as well as distributors across North America.
Lakeside Steel also indirectly wholly owns Lakeside Steel Alabama, which will be a diversified steel pipe manufacturer strategically situated in the southern United States on successful completion of construction of the new facility in Thomasville, Ala., which is currently underway.
