Steel Mills

Benteler to Build Tube Plant and EAF in Shreveport, LA

Written by Sandy Williams

Austrian-based, Benteler International AG has begun construction of a division of Benteler Steel/Tube in Shreveport, LA. The $975 million steel manufacturing project will include a hot-rolling seamless tube facility to be completed in third quarter 2014 and an electric arc furnace in 2020.

The facility will have a capacity of producing 320,000 tons of steel tube products. A spokesperson at Benteler said the company will buy billets from the local market until the steel mill furnace is operational. On completion of the steel mill, scrap metal for use in the EAF will be purchased in the global market.

The project will consist of 1.35 million square feet on 330 acres at the Port of Caddo-Bossier in Shreveport.  Benteler Steel Tube expects to create 675 new direct jobs with an average annual salary of $50,000.  Louisiana State University estimates 1,450 indirect jobs will be created along with 1000 construction jobs during the construction of the facilities—an economic impact of $16.2 billion for Northwest Louisiana over the next two decades.

Benteler chose Shreveport from a pool of 100 potential sites and secured the deal on an incentive package offered by the Louisiana Economic Development that includes performance base grants totaling $57.4 million for site development, infrastructure and equipment; a grant to reimburse certain relocation and internal training expenses and the development of a 65,000 square foot BPCC for Advanced Manufacturing and Engineering Technology on the campus of Bossier Parish Community College.  The BPCC will be used by Benteler for training purposes and later for the needs of manufacturers in the region.

Benteler will also receive tax incentives, and contributions from the Red River Waterway Commission ($6 million), The Port of Caddo-Bossier ($3 million) and the Caddo Parish Commission ($2.6 million).

“This new manufacturing facility – our first in the U.S. – is an important part of our global growth strategy,” said Matthias Jaeger, president and CEO of Benteler Steel/Tube GmbH. “With more than 25 percent of our steel/tube products already flowing into the United States, and demand expected to increase, this new Caddo Parish plant is poised to play a critical role in supporting the U.S. domestic energy industry.”

Benteler Steel/Tube, headquartered in Paderborn, Germany, specializes in manufacturing and processing of seamless hot-rolled steel tubes and seamless cold-drawn precision steel tubes. There are four Benteler Steel/Tube sales offices located in North America, including headquarters in Houston.

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