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News Flash

SMS group Wins Order for US$150 Million Structural Tube Mill

 

Pipe and tube maker Zekelman Industries has contracted SMS group as the primary equipment supplier for its new US$150 million electric-weld tube mill. 

In a statement, SMS group said that with the capability to produce 28-inch tube, the continuous mill will be the largest in the world. It is being designed to produce 400,000 tons annually of piling and hollow structural sections. 

The mill will produce round sections in diameters ranging from 10 ¾ inches to 28 inches, with wall thickness of up to 1 inch. It also will produce 8- to 22-inch square hollows and rectangular hollows of up to 34 by 10 inches. 

Zekelman announced the project last week, saying the mill is designed to meet demand for domestically produced, larger-sized hollow structural sections. As it is, builders and fabricators don’t have access to domestically made, welded hollow squares larger than 16 inches, according to Zekelman Industries. 

Zekelman said one of the mill’s key specifications will be its quick changeover time of less than 60 minutes. It also will have special forming and sizing technology for precise dimensional tolerance.

SMS group, too, said, the line will meet the highest requirements for quality and production output.

“The computer-controlled SMS group CSS Quicksetting system ensures that the rolls can be adjusted automatically to their working positions after the size change. Further to an operational speed reaching 35 m/minute, the line offers superior diameter/wall thickness ratio capability which, along with a quick product changeover time, results in great product flexibility.”

SMS group said the new order furthers an existing relationship with Zekelman Industries.   

“The company has placed several orders with SMS group for the expansion and improvement of the product spectrum of the ERW lines installed in Harrow, Canada, and Blytheville, U.S.A. This latest order marks the next step in a successful cooperation between both companies,” it said. 

SSAB to Install New Welded Tube Lines

Fives has won an order for two of its OTO welded tube lines from SSAB Europe, the equipment builder said Tuesday.

In a statement, Fives said the two lines are bound for SSAB’s Hämeenlinna facility in Finland. The lines will be capable of producing tubes in diameters from 16mm to 130mm and in thicknesses . The mill lines will be designed to process high grade yield carbon steel to produce tubes with 8mm maximum thickness for automotive applications.

OTO tube mill lines will be designed and preassembled at Fives’ plant in Boretto, Italy, and delivered to Hämeenlinna’s in 2019-2020.

“Fives’ proposal featured innovative technical solutions and production flexibility to meet highly customized advanced technology equipment requirements, as well as tight scheduling,” the company said. “The scope of supply includes fully automatic entry lines, forming and sizing section with quick change, tools and cut-off units.”

TMK Sells U.S. Branch to Italy’s Tenaris

The largest manufacturer of steel pipes for the oil and gas industry in Russia, TMK,Metal-Expo regular exhibitor, has agreed on selling its U.S. branch IPSCO Tubulars Inc. for $1.2 billion to Italy’s Tenaris, RBC reported citing the companies’ press service.

The sum does not include IPSCO’s funds and the debt, the size of which the parties have not revealed. According to RBC, the deal fits the company’s strategy that indicates monetizing international assets as one of its priorities.

Now, TMK is not planning on selling any other international assets, a company representative told the news outlet. “Over the past 15 years, we have been expanding our manufacturing presence and positioning in the U.S. market. This acquisition would mark a further step in our journey as a domestic producer and supplier of the U.S. oil and gas industry,” said Paolo Rocca, chairman and CEO of Tenaris.

The funds raised from the sale amount to 38% of TMK’s overall debt, says Maxim Khudalov, Director of rating agency ACRA. For finalizing the deal, there is the need to comply with certain preliminary conditions, including receiving any necessary permissions.

Headquartered in Houston, IPSCO owns 11 enterprises in the United States and Canada, including service centers and trading houses. The company accounts for 15% of the U.S. market of seamless oil and gas pipelines and is among three major suppliers.

The Russian company had planned to hold an IPO of its branch in February 2018, but postponed it a week after the U.S. Treasury Department published its “Kremlin report” that blacklisted 210 Russian government officials and businessmen from the Forbes list of billionaires and CEOs of major state corporations, including TMK’s owner Dmitry Pumpyansky.

TMK is not the first Russian metals company that is selling its assets in the United States. Several years ago, Alexei Mordashov’s Severstal sold all of its U.S.-based plants after Russia annexed Crimea and U.S. sanctions were introduced against Moscow.

Outokumpu: stainless steel market still challenging

HELSINKI (AFN) - The Finnish company Outokumpu believes that the stainless steel market will remain challenging in the first quarter due to the large stocks at distributors. That is what the industry colleague of Amsterdam-listed Aperam writes in his figure publication.

Concessions offered to Brussels on Thyssen-Krupp and Tata Steel merge

BRUSSELS (AFN / BLOOMBERG) - ThyssenKrupp and Tata Steel have offered concessions to the European Commission for approval of the intended merger of their European steel activities. A spokesperson for the committee announced this, without mentioning further details about the commitments.

Brussels is currently investigating the matter thoroughly. The Committee fears that the merger will have a negative impact on competition in the steel market, which may result in potentially unwanted price increases. The provisional deadline for the judgment has now been postponed to 5 June. A decision would initially be taken on 13 May.

ThyssenKrupp reported that the commitments cover all concerns of the committee. According to the company, these are "extensive and substantial" concessions to Brussels that are acceptable to the merger partners.

Last year the merger between the European divisions of the German ThyssenKrupp and the Indian Tata Steel was finalized. The new company will be called ThyssenKrupp Tata Steel and will be headquartered in Amsterdam. The former Hoogovens in IJmuiden will become part of the merger company.

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