Economy
Forza Steel to Build $60M Pipe and Tube Facility in Texas
May 24, 2023
Forza Steel is investing $60 million to build a manufacturing facility at the Port of Brownsville in Texas on the Mexican border.
The Mexican carbon steel pipe producer is planning to install equipment in early July to begin rolling mill operations, according to a press release from the Port of Brownsville on May 2.
The facility will have an automated tarping station to increase safety while loading cargo, and the company plans to bring in 260,000 metric tons of steel per year, while outputting 240,000 tons annually.
Forza Steel has a manufacturing facility in Nuevo León, Mexico, where it supplies customers in both the US and Mexican markets, according to the release, which noted that the company selected Brownsville to enhance US operations by getting closer to its customer base and to close gaps in the supply chain.
“The Port of Brownsville is the perfect location for Forza Steel’s entry into the American market. The location from Monterrey to Brownsville is ideal,” Isidro Cantu, general manager for Forza Steel USA, said.
In an email to SMU on May 26, Cantu said Forza Steel has already begun the second stage of this investment with the acquisition of two additional processing lines.
“One for the oil and gas industry and the other for the solar and construction industry, and they are scheduled to start production by the end of 2024,” he said.
Forza Steel will bring in 150 direct jobs and 450 indirect jobs to the region, and the new 650,000-square-foot facility will make steel pipe and tube for the automotive, construction, and oil and gas industries.
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Economy
ISM: Manufacturing growth slows in July, hits 10-month low
US manufacturing activity slowed again in July to a 10-month low
CRU: Pushing EU imports back to 15% would be a big task
Several EU member states have published a ‘non-paper’ that puts forward proposals for a post-safeguard trade measure.
SMU Community Chat: Tariff-induced panic purchases, inflation, and calculating costs
Chief executive of the Institute for Supply Management (ISM), Tom Derry highlighted how reactive buying behavior has shifted the market into a quiet demand period. Derry presented ISM data during the weekly SMU community chat.
Architecture billings still sluggish despite project inquiry uptick
The Architecture Billings Index (ABI), a leading indicator for non-residential construction activity, declined for an eighth straight month in June.
Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”