Caddo, La. – In a decision that will no doubt be welcomed by a weary U.S. economy, Benteler Steel/Tube announced it will build a new hot rolling tube mill in Caddo, Louisiana.

The project will be the company’s first U.S. production facility and expected to cost around $900 million.  It is estimated that 675 full time jobs will be needed when at full capacity.

The decision to move to the U.S implies a confidence in an increasingly resurgent North American economy and will strengthen the company’s position in the oil country tubular goods (OCTG) market.

Groundbreaking is expected for spring of 2013 and completion planned for the second half of 2015. In the initial phase of the project, Benteler will build a hot rolling tube mill and finishing lines for the production of seamless tubes.

According to the U.S. Energy Information Administration, the United States is expected to increase crude oil and natural gas consumption over the next 25 years.

With the U.S. planning to cut down on foreign energy imports more exploratory drilling is going to become a reality. As a result, Bentler is targeting the American market because their steel tubes are high enough quality to meet energy regulations.

Currently, more than 25 per cent of Benteler Steel/Tube products flow into North America.

Matthias Jaeger, president and CEO Benteler Steel/Tube GmbH said of the project, “With the growing demand for high-quality steel tubes for exploratory drilling in the U.S., and Louisiana’s proximity and access to energy customers, Benteler Steel/Tube’s Caddo Parish plant is poised to play an important role in meeting U.S. domestic energy needs.”

www.benteler.com