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Tenaris Closing U.S. OCTG Couplings Plant
01/27/2016 - OCTG producer Tenaris is planning to mothball its couplings facility in Houston, Texas, USA, by the end of March, the company has announced.
The closure is indefinite and will affect approximately 165 employees, it said.
“The decision was driven by a combination of factors – the falling price of oil, the continuing reduction in rig activity and close to a year of inventory on the ground created mostly by unfairly traded imports of OCTG from South Korea," the company said in a statement.
The company pointed out that the price of oil hit a 12-year low recently and the number of active rigs is down more than 60 percent since the rout in energy prices began.
“This is a tough market with low visibility. We are making difficult decisions in this environment to better position Tenaris for when the market returns,” said Luca Zanotti, vice president and managing director for Tenaris USA.
About a week-and-a-half earlier, Tenaris said it was curtailing operations at its welded pipe mill in Blytheville, Ark., USA, laying off approximately 100 people.
Nevertheless, Tenaris said it is not giving up in the U.S. market.
“Tenaris remains committed to the U.S. industry, focused on long-term growth in the domestic market. The company continues with
its investment plans, such as its seamless mill currently under construction in Bay City, Texas.”
“The decision was driven by a combination of factors – the falling price of oil, the continuing reduction in rig activity and close to a year of inventory on the ground created mostly by unfairly traded imports of OCTG from South Korea," the company said in a statement.
The company pointed out that the price of oil hit a 12-year low recently and the number of active rigs is down more than 60 percent since the rout in energy prices began.
“This is a tough market with low visibility. We are making difficult decisions in this environment to better position Tenaris for when the market returns,” said Luca Zanotti, vice president and managing director for Tenaris USA.
About a week-and-a-half earlier, Tenaris said it was curtailing operations at its welded pipe mill in Blytheville, Ark., USA, laying off approximately 100 people.
Nevertheless, Tenaris said it is not giving up in the U.S. market.
“Tenaris remains committed to the U.S. industry, focused on long-term growth in the domestic market. The company continues with
its investment plans, such as its seamless mill currently under construction in Bay City, Texas.”
