Tenaris to acquire IPSCO Tubulars

Luxembourg-based Tenaris S.A. has agreed to acquire IPSCO Tubulars Inc. facilities in North America from the Russian company PAO TMK for $1.2 billion. The transaction is subject to regulatory approvals, including approval by United States antitrust authorities.

IPSCO Tubulars makes seamless and welded oil country tubular goods (OCTG) and line pipe products, with an annual production capacity of 450,000 metric tons of steel bars, 400,000 metric tons of seamless pipe and 1 million metric tons of welded pipe.

IPSCO Tubular has 11 production facilities, with 10 in the United States and one in Canada. Its mill in Koppel, Pennsylvania, includes a melt shop that uses ferrous scrap in the production of steel billets.

The acquisition has been designed to enhance Tenaris’ position and local manufacturing presence in the U.S. market, extending its product offering and expanding its service footprint. It would add a first U.S. steel bar production facility in Koppel and complement its seamless production in Bay City, Texas, with a second pipe facility in Ambridge, Pennsylvania.

“Over the past 15 years, we have been expanding our manufacturing presence and positioning in the U.S. market,” says Paolo Rocca, chairman and CEO of Tenaris. “This acquisition would mark a further step in our journey as a domestic producer and supplier to the U.S. oil and gas industry.”

Tenaris is a global supplier of steel tubes and related services with several locations in Mexico, Argentina, Brazil and other parts of Central and South America.