International steel pipe manufacturer Tenaris said Jan. 2 it closed a previously announced transaction to acquire IPSCO Tubulars, a U.S. manufacturer of steel pipe, from Russian steel maker PAO TMK for $1.067 billion. Also, Tenaris’ announcement said the parties entered into a six-year distribution agreement whereby Tenaris will be the exclusive distributor of TMK’s OCTG and line pipe products in the U.S. and Canada. Tenaris has two plants in the Houston area.
The Houston Chronicle said Tenaris makes 47 percent of its sales in North America, where it now is the largest steel pipe producer. Luca Zanotti, president of Tenaris USA, told the Chronicle, “When you compare the average consumption per rig today to 2014, you see that consumption went up by almost 50 percent. You’re seeing longer laterals.”