Tenaris scales back production levels

Steel and pipe maker cites decrease in oil exploration and drilling activity.

March 20, 2020

Luxembourg-based steelmaker Tenaris, which has melt shops in North, Central and South America, is scaling back operations at several plants in the United States.

Much of the company’s output goes into the oil and gas sectors. In a March 19 news release, the company cites “the abrupt, sharp decline in the price of oil and subsequent decrease in market activity” as reasons for layoffs and idled machinery.

The company is idling its plants in Koppel and Ambridge, Pennsylvania, including the melt shops, and a downstream pipe threading plant in Brookfield, Ohio.

Tenaris also says it is “implementing employee reductions” at downstream pipe threading and welding plants in Baytown, Texas, and Hickman, Arkansas.

Two days earlier, Tenaris had announced layoffs affecting 110 employees at its welded steel pipe manufacturing plant in Calgary, Alberta, Canada.

On its website, Tenaris states that ferrous scrap comprises 68 percent of its melt shop feedstock globally. In addition to the two Pennsylvania mills, the company also has melting capacity in Mexico, South America and Europe.