Tenaris employees, executives and elected officials gathered at Tenaris’s plant in Conroe, Texas, Friday, October 19, to celebrate its reactivation following a three year suspension of operations. The Conroe mill is now heat treating and finishing pipe from Tenaris’s mill in Bay City, Texas, to support the ramp up of domestic production. Tenaris invested approximately USD 7 million USD to ready the plant for operations, including safety, training, equipment and systems upgrades.
Luca Zanotti Tenaris President USA said “I want to thank our employees, many of whom have returned to the plant and those who are new to Tenaris, for their dedication to completing a safe, and successful, start-up. Our Conroe facility is playing an important role in the resurgence of US manufacturing.”
Tenaris announced it would restart specific manufacturing processes at the Conroe mill as a result of improved market conditions and actions by the US government in support of domestic manufacturing. “The story of Tenaris is just like many others across our State and nation because of President Trump’s vision and his America-first policies. I’m working hard in Austin to make sure we maintain a great business climate to allow stories like this to continue. “We are prepared to respond to the increased demand for the domestic supply of pipe,” Zanotti said in the June 21 release. “Reviving areas of the plant will allow us to maximize production from our new mill in Bay City expediting the finish, prep and delivery of our products, while raising the current level of activity at the plant that during the downturn, remained opened as a service center.”
Per the release, Tenaris also will hire about 150 additional employees for its seamless pipe mill in Bay City and its threading facility in Houston to support the production ramp-up. As of May, Tenaris had about 1,500 employees in Houston and Bay City, which is southwest of Houston in Matagorda Country. It has net sales around $5.29 billion and net income around $536 million. The plant will provide heat treatment and finishing of pipe products, thus supporting Tenaris’ ramp-up of seamless activity in the U.S. The increase in activity is thanks to improving market conditions such as higher oil prices, increased drilling activity and increased demand caused by steel and aluminum tariffs, per the release. Luca Zanotti, president of Tenaris’ U.S. business line, told the Houston Business Journal in May that he was considering bringing the Conroe facility back online.