Futures
Borusan Completes Buy of Fla.-based Berg Pipe
April 14, 2023
Turkish pipe and tube maker Borusan Mannesmann has finalized its buy of Panama City, Fla.-based Berg Pipe for $162 million.
Borusan said it has acquired 100% of the US pipe maker, which manufactures large-diameter line pipe.
“By acquiring Berg Pipe, a company with a total manufacturing capacity of 550,000 tons, we have secured a strategic position in the large-diameter pipe sector, ” Borusan Group CEO Erkan Kafadar said in a statement.
The company noted this strengthens its position in the North American energy pipe industry, and is “in line with its global growth strategy of expanding its manufacturing capacity in target markets.”
“Berg Pipe owns two facilities, one in (Panama City,) Florida, where longitudinal seam-welded pipes are manufactured, and one in (Mobile,) Alabama, where spiral seam-welded large-diameter pipes are manufactured,” Borusan said.
Borusan Mannesmann has been operating in the US since 2014, with a facility in Baytown, Texas.
The company said that with this acquisition and a second facility under construction in Baytown, where production is set to start in 2023, it will own four manufacturing plants in the US.
Borusan added that the company’s total manufacturing capacity in the US will reach 1 million tons and around $1 billion in turnover.
The Baytown operation manufactures oil country tubular goods (OCTG) and line pipe for the energy sector.
Including the addition of Berg Pipe, Borusan will have a total of 11 facilities located in Turkey, Italy, Romania, and the US, the company said.
By Ethan Bernard, ethan@steelmarketupdate.com
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