BENTELER Group to sell steel tube plant in Shreveport to Tenaris
Germany-based BENTELER Group said that it will divest its steel tube plant in Shreveport, Louisiana to Tenaris, a steel pipe products manufacturer and supplier based in Luxembourg, for a price of $460 million.
According to BENTELER Group, the decision to sell the steel tube plant in Shreveport was taken after a comprehensive analysis. The German group is said to have ramped up the plant in 2020 to make it one of the most modern and efficient steel tube factories in North America.
BENTELER Group stated that the decision backs its transformation strategy, which is centered on profitable growth as well as financial resilience.
The German group said that amid the changing trading environment, the significant effect of Covid-19 and Russia’s war on Ukraine, and growing market volatility, it is vital for firms to ensure considerably greater financial stability.
1. Tenaris to acquire BENTELER Group’s steel tube plant in Shreveport, Louisiana. Photo courtesy of The BENTELER Group.
BENTELER Group CEO comments on the sale of the steel tube plant in Shreveport, Louisiana
Ralf Göttel – BENTELER Group CEO said: “It is part of our corporate culture to constantly evolve. The sale of the steel tube plant in Shreveport makes the BENTELER Group even stronger, more flexible and financially more resilient.
“We successfully completed the ramp-up of the Shreveport plant in 2020. Today, the Shreveport plant is one of North America’s most modern and efficient steel tube plants. The plant is thereby able to realize its full potential in the context of the strong oil and gas market in the US.”
The holding company for the steel tube plant in Shreveport is Benteler Steel & Tube Manufacturing Corporation, which produces seamless steel pipes. The company has a pipe rolling capacity of up to 400,000 metric tons per year.
Tenaris said that the acquisition of the Shreveport steel tube plant will further grow the company’s production range and local manufacturing footprint in the American market.
The deal, which is subject to regulatory approvals, is likely to close by the end of this year.