HOUSTON--(BUSINESS WIRE)--TMK IPSCO, the American Division of global pipe manufacturer TMK, today announced plans to reduce the number of operating hours used to produce welded pipe at its Blytheville, Arkansas, Camanche, Iowa and Wilder, Kentucky facilities. In addition, the eight-inch welded pipe mill at Wilder will be idled. In total, the number of operating hours at TMK IPSCO’s welded pipe plants will be reduced by approximately 30 percent.
The decision to reduce uneconomic welded pipe operations was driven by increasing pressure from unfairly traded imports. While this will result in a reduction of operating hours, contract work and, possibly, layoffs, TMK IPSCO expects little or no impact on EBITDA, as the division continues to shift its product mix towards seamless pipe and premium connections.
“We have seen intense pressure from low-priced and unfairly traded imports, particularly welded products, for more than a year and a half. Since the International Trade Commission (ITC) announced its preliminary decision, we have seen a considerable surge in the import of Korean welded pipe,” said TMK IPSCO President and CEO Dave Mitch. He noted that almost half of the welded oil country tubular goods (OCTG) sold in the U.S. in 2013 was manufactured in foreign countries.
TMK IPSCO is one of the largest North American producers of welded and seamless pipe and premium connections for the oil and gas industry.
About TMK IPSCO
TMK IPSCO operates in the Americas as a division of TMK, a global market leader in energy pipe production. TMK operates 28 production facilities around the world. TMK product offerings include a wide range of seamless and welded energy tubular products including oil and gas drill pipe, well casing and tubing, line pipe, large diameter pipe, standard pipe, hollow structural sections and related services. TMK also manufactures premium connections for oil and natural gas drilling and production under the TMK UP brand name.
TMK IPSCO Manufacturing Plants
For further information about TMK IPSCO, please visit www.tmk-ipsco.com.