Report: OMK Exploring Sale of U.S. Tube Mill
01/18/2016 - Russia’s United Metallurgical Co. (OMK) is looking into selling its U.S. pipe mill, which it opened three years ago to capitalize on the then-booming energy market, according to the Reuters news service.
Citing confidential sources, the news service said OMK also is putting a finishing facility on the sales block along with the 250,000 tons-per-year facility in Houston, Texas.
The facility began production in December 2012, and during an ensuing ribbon-cutting ceremony, company officials said the US$100 million investment was driven by strong demand arising from North America's oil- and gas-bearing shale fields.
These days, though, there is too much oil and gas, and energy producers have greatly curtailed their drilling plans. At the same time, there’s too much steel pipe. Reuters said the steel industry overbuilt in trying to take advantage of the boom, adding nearly 2 million tons of pipe and tube capacity.
The facility began production in December 2012, and during an ensuing ribbon-cutting ceremony, company officials said the US$100 million investment was driven by strong demand arising from North America's oil- and gas-bearing shale fields.
These days, though, there is too much oil and gas, and energy producers have greatly curtailed their drilling plans. At the same time, there’s too much steel pipe. Reuters said the steel industry overbuilt in trying to take advantage of the boom, adding nearly 2 million tons of pipe and tube capacity.
