Tenaris is planning its first US pipe mill in Bay City, TX. The company’s North American headquarters is located in Houston and the Eagle Ford’s proximity makes the decision even easier. The new facility will have the ability to produce up to 600,000 tons of high quality seemless steel pipe each year. The plant is expected to be in operation in 2016.
“Our new facility will complement our integrated global manufacturing network and work closely with our existing North American operations to further strengthen domestic production,” Paolo Rocca, Chairman and CEO said.
A Texas Enterprise Fund grant in the amount of $6 million and tax abatement offers from local authorities were used to provide lure the Tenaris plant to Texas.
“This announcement is only possible thanks to the hard work of state and local officials, as well as the area business community, which always plays a major role in decisions like this,” Texas Governor Rick Perry said.
The plant will employ as many as 600 people who will make more than $65,000 per year on average. Census.gov reports the median household income from 2007-2011 was just a little more than $50,000, so these jobs beat the average by almost 30%. This won’t be directly attributed to the South Texas shale boom, but I think you can just add this to the already booming Eagle Ford job count.
Read more from the press release at tenaris.com