LUXEMBOURG--(Marketwire -06/21/12)- Tenaris S.A. (TS) (TS.BA) (TS.MX) (TEN.MI) ("Tenaris") announced today an investment plan to expand its U.S. operations. The plan includes the installation of a state-of-the-art seamless pipe mill, heat treatment and premium threading facilities with an estimated investment of US$1.5 billion. The new mill, which is expected to begin operations in 2016, will have an annual production capacity of 650,000 tons of high quality seamless pipes and will be fully integrated with the rest of Tenaris's U.S. manufacturing and service operations.
U.S. market demand for high quality OCTG and line pipe products is growing rapidly due to the development of unconventional shale (oil and gas) reserves and the resumption of deepwater drilling activity in the Gulf of Mexico. The new investment plan will strengthen Tenaris's local production and service capabilities, allowing it to reduce lead times and serve its U.S. customers with a full range of locally manufactured seamless, welded and premium products, in a market where imported products account for over half of total consumption.
Tenaris is a leading global supplier of steel tubes and related services for the world's energy industry and certain other industrial applications.