UPDATE: The company on Feb. 13 issued the following statement: “Tenaris is adjusting production at its threading facility in Brookfield, Ohio, due to ongoing challenges in the oil and gas market. The decision has resulted in a two-week long furlough starting Feb. 16. Tenaris will continue to evaluate the market’s conditions to mitigate impact to its operations and preserve its talent.”
Luxembourg-based Tenaris S.A. said Jan. 2 that it had completed its acquisition of IPSCO Tubulars Inc., a U.S. manufacturer of steel pipe, from PAO TMK.
IPSCO has a plant on Parkway Drive in Brookfield.
The acquisition price was $1.1 billion, including $2.2 million in working capital, Tenaris said.
“The IPSCO acquisition marks a new chapter in our U.S. expansion and represents another milestone in Tenaris’s history,” said Paolo Rocca, chairman and chief executive officer of Tenaris. “Together, we are uniquely positioned to serve the U.S. oil and gas industry, with an extensive geographic deployment throughout North America and an unmatched product range.”
The Brookfield plant employs 125, and a company spokesman said it’s “too early to provide specifics” as to whether the acquisition will affect employment there.
“That said, Tenaris is committed to a seamless and thoughtful transition,” the spokesman said.
In connection with the closing of the transaction, the parties entered into a six-year master distribution agreement making Tenaris the exclusive distributor of TMK’s oil country tubular goods and line pipe products in the United States and Canada.
Tenaris’ existing U.S. industrial and service network – located primarily in the south – is complemented by IPSCO’s facilities, located mainly in the midwestern and northeastern regions of the country, the company said.
“We look forward to integrating IPSCO’s team and serving our customers more efficiently,” Rocca said.
The photograph was contributed by the company.