Trade Cases

Borusan Mannesmann Seeks Tariff Exclusions on OCTG

April 19, 2018

Pipe producer Borusan Mannesmann Pipe U.S. is among a reported 3,500 companies that have requested product exclusions from President Trump’s Section 232 steel tariffs. Borusan has filed for exclusions on 19 items, which covers the various diameters of its oil country tubular goods line.

Borusan Mannesmann, a subsidiary of the Borusan Group in Turkey, operates a pipe mill in Baytown, Texas. For some of its products, it sources green tubes from its parent in Turkey and finishes them into OCTG on its line near Houston. If its imported raw material is subject to a 25 percent tariff, said a spokesperson, the company will be put at a serious competitive disadvantage.

Borusan Mannesmann launched the $148 million pipe mill in 2014 with plans to expand it as business developed. “Then along comes this 25 percent tariff and suddenly they realize their plans to grow and hire more people are in jeopardy,” said the spokesperson.

Investment in the U.S. by foreign producers like Borusan creates jobs and boosts the economy just like investment by domestic mills. “We understand the tariffs are to help U.S. steel manufacturers. By the same token, allowing us to bring in a limited amount of product from our Turkish parent to supplement our U.S. production is also in the U.S. steel industry’s interest,” she added. “To me, it’s really about equality.”

The Commerce Department has thousands of exclusion requests to consider by a deadline of May 10. With less than a month for public comment and review, it’s hard to predict how the process will play out.

Borusan Mannesmann operates five plants on three continents with 1.4 million tons of annual production.