Reuters reported that Borusan Mannesmann, Turkey’s leading steel pipe manufacturer, will invest USD 150 million in building a production facility in the United States.
The company in a statement with the Istanbul Stock Exchange said that the facility, which is seen starting operation in the H2 of 2014, is expected to yield an annual revenue of USD 500 million to USD 600 million depending on steel prices.
The pipe producer stated that it had to respond to the significant growth of shale gas production in North America and so decided to set up an oil country tubular goods pipe facility with an annual output capacity of 200,000 tonnes to meet the demand driven by shale gas and oil production.
Once fully operational, the facility scheduled for commissioning in the second half of 2014 is expected to create a turnover of $500-600 million depending on steel prices. Currently, the company's turnover stands at $800 million.
With the investment in question, Borusan Mannesmann which has a 2% share in the US OCTG market and a 4% share in the US seamless pipe market is estimated to double its shares in both markets.
Source:
http://www.steelguru.com/middle_east_news/Borusan_Mannesman_to_build_OCTG_pipe_mill_in_US/296313.html
