HOUSTON--(BUSINESS WIRE)--On January 17, 2014, Friedman Industries, Incorporated (the “Company”) purchased approximately 25 acres of land in Lone Star, Texas, in close proximity to the location of the Company’s Texas Tubular Products Division (“TTP”). During the quarter ending March 31, 2014, the Company expects to purchase an additional 15 acres adjacent to this newly-purchased land. For each of these land transactions, each of the sellers is an affiliate of United States Steel Corporation. One of the sellers, U.S. Steel Tubular Products, Inc., is also the Company’s primary supplier of tubular products and coil material used in pipe manufacturing and is a major customer of the Company’s finished tubular products, as disclosed in the Company’s other periodic reports. The Company has begun the initial stages of construction of a pipe-finishing facility on the acreage already purchased. The Company’s management estimates that construction of the facility, including yard improvements, buildings and equipment, will cost approximately $9.2 million. The Company plans to finance the project from internal sources. The Company anticipates that the pipe-finishing facility will operate as part of TTP, which currently operates two pipe mills that produce Electric Resistance Welded pipe ranging in size from 2 3/8” O.D. to 8 5/8” O.D.
For further information regarding this release, please contact Mr. Alex LaRue, Assistant Vice President – Secretary and Treasurer at (713)672-9433.