Houston, Texas-based TMK IPSCO, the American Division of global pipe manufacturer TMK, announced Monday plans to reduce the number of operating hours used to produce welded pipe at its Blytheville, Arkansas, Camanche, Iowa and Wilder, Kentucky facilities. In addition, the eight-inch welded pipe mill at Wilder will be idled. In total, the number of operating hours at TMK IPSCO's welded pipe plants will be reduced by approximately 30 percent.
"We have seen intense pressure from low-priced and unfairly traded imports, particularly welded products, for more than a year and a half. Since the International Trade Commission (ITC) announced its preliminary decision, we have seen a considerable surge in the import of Korean welded pipe," said TMK IPSCO President and CEO Dave Mitch.
The decision to reduce uneconomic welded pipe operations was driven by increasing pressure from unfairly traded imports. While this will result in a reduction of operating hours, contract work and, possibly, layoffs, TMK IPSCO expects little or no impact on EBITDA, as the division continues to shift its product mix towards seamless pipe and premium connections.
"We have seen intense pressure from low-priced and unfairly traded imports, particularly welded products, for more than a year and a half. Since the International Trade Commission (ITC) announced its preliminary decision, we have seen a considerable surge in the import of Korean welded pipe," said Mitch. He noted that almost half of the welded oil country tubular goods (OCTG) sold in the US in 2013 was manufactured in foreign countries.
