US Steel to reopen Texas pipe mill

Pittsburgh-based United States Steel Corp. has announced it will restart the No. 1 Electric-Weld Pipe Mill at Lone Star Tubular Operations in Lone Star, Texas. The No. 1 Mill was idled in 2016 because of what the company calls challenging market conditions for tubular products created by fluctuating oil prices, reduced rig counts and high levels of imports.

The Lone Star No. 1 Mill will provide “full-body normalized electric-welded pipe” in size ranges 7 to 16 inches in outside diameter for customers in the U.S., including in the Permian Basin oilfield region.

“We are encouraged by an improvement in market conditions and an increased customer demand for tubular products that are mined, melted and made in America,” says U.S. Steel president and CEO David B. Burritt.

“We continue to evaluate all options to align our manufacturing capacity with the growing energy market,” says Douglas R. Matthews, a senior vice president with the company. “Restarting the Lone Star No. 1 Mill will give our customers access to the high-quality electric-welded pipe they expect from U.S. Steel.”

The Lone Star No. 1 Mill has an annual capacity of approximately 400,000 tons. U.S. Steel anticipates hiring 140 new employees. The restart process will begin immediately and will be completed in the  early third quarter of 2019, according to the firm.