Tubacero Eyeing U.S. Plant

Mexican steel tube manufacturer Tubacero is considering moving one of its plants to the United States if Washington-imposed anti-dumping duties are not removed when they come up for review, the company's managing director Leon Gutierrez told BNamericas.

The Monterrey-based company has been looking at shifting one of its plants north of the border for some time. "But if we are able to shake off the anti-dumping levies there would be no need to move to the US; that issue will be reviewed next year," he said. If the duties are not scrapped, "we will analyze other alternatives," Gutierrez said.

But Tubacero is still keen on participating in future projects in the United States, which Gutierrez said does not have sufficient installed capacity to satisfy future steel tube demand.

Thanks to a better 1H02 compared to 1H01, Tubacero is a healthier and more profitable company, he said. "Financially we are very sound, and fortunately the niche market for larger diameter, and thicker tubes, which is the one we are attacking, is a very good one," he added.

Tubacero is not planning to build new plants to boost production, since its installed capacity is well above present demand, but rather it intends to consolidate its position and seek new markets and new projects, Gutierrez said.

The company manufactures seamed carbon steel tubes for the oil, gas, electric power, mining, construction and waterworks sectors. It has installed capacity of 350,000t/y at its five plants in Mexico. BN Americas