Tenaris S.A. entered into a definitive agreement to acquire from PAO TMK, a Russian manufacturer of steel pipe, 100% of the shares of its wholly owned U.S. subsidiary IPSCO Tubulars Inc. for $1.2 billion. IPSCO Tubulars is a U.S. domestic producer of seamless and welded 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 1,000,000 metric tons of welded pipe. The acquisition will add a first U.S. steel bar production facility at Koppel, Pa.; complement Tenaris’ seamless production in Bay City, Texas, with a second facility in Ambridge, Pa.; and bring additional heat-treatment, welding and finishing facilities to better serve customers.
The transaction would enhance Tenaris’ position and local manufacturing presence in the U.S. market, extend its product offering and expand its service footprint.
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