Prices
Energy Slowdown Prompts Closure of TimkenSteel Houston
Written by Sandy Williams
November 25, 2019
The slowdown in the energy sector has resulted in the closing of a nearly 50-year-old plant. TimkenSteel, headquartered in Canton, Ohio, announced it will close its TimkenSteel Material Services facility in Houston.
“We are focusing on our core strengths of making and heat treating steel and more fully utilizing our supply chain to provide the value-added services required by our customers,” said William Bryan, executive vice president of manufacturing and supply chain. “This change to how we serve the evolving energy market will improve the company’s financial performance.”
The Houston facility offers precision hole-making and finishing services for its custom-alloy steel bar, tube and component products used in oil well drilling.
Oil prices have been subdued in recent months with crude oil trading between $57 and $63 per barrel this past week. The U.S. oil and gas rig count fell for the 12th time in the last 14 weeks and is down about 30 percent since the beginning of the year.
TimkenSteel is one of the largest manufacturers of steel bars and mechanical tubing in the U.S., serving the oil and gas, automotive, industrial and mining sectors. TimkenSteel profits took a hit during the third quarter of 2019. The company posted a loss of $4.6 million for the quarter compared to a profit of $1.4 million a year ago. The closure of the Houston facility is expected to result in realized annual savings of $6 million to $8 million.
The 100,000-square-foot operation currently employs approximately 100 people.
Sandy Williams
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