BENTELER will leverage future business opportunities in the prosperous steel tube market and has decided to retain its steel tube plant in Shreveport/Louisiana
> Following the successful ramp-up, the site is now one of the most modern and efficient steel tube plants in North America.
> Oil and gas market in the US developed very positively over recent months: future market perspective by far exceeds previous expectations.
> The fair value BENTELER currently assigns to the Shreveport plant is significantly higher than the purchase price agreed with Tenaris in July 2022.
> Therefore, BENTELER has decided to exercise its contractual right to terminate the sale following the expiration of the long stop date, as originally agreed with Tenaris.
Salzburg, February 6, 2023. Following a constructive dialogue with Tenaris, BENTELER Group today announced that the transaction to divest its steel tube plant in Shreveport/Louisiana (USA) to Tenaris will be discontinued. The planned sale of the steel tube plant was originally communicated in the summer of 2022.
The Executive Board of the BENTELER Group has decided that it is in the best interest of its stakeholders to retain the steel tube plant in Shreveport operated by BENTELER North America Corp. and further strengthen the steel tube business in the US.
One of the most modern and efficient steel tube plants in North America
Following the successful ramp-up of the BENTELER steel tube plant in Shreveport, the site is now one of the most modern and efficient steel tube plants in North America and can exploit its full potential – especially in view of the strong oil and gas market in the US which has developed very positively over the past months. The future market perspective by far exceeds previous expectations. Therefore, the BENTELER Group has exercised its contractually agreed right to terminate the envisaged sale for strategic, and economic reasons.
Further strengthen position in excellent market environment
Together with the employees, the plant management and the sales organization in Houston, BENTELER will further strengthen its position in an excellent market environment by increasing the productivity of the plant and developing the product portfolio in close cooperation with its customers.
Christian Wiethüchter, CEO and CSO of BENTELER Steel/Tube, highlighted: "We would like to thank our employees for their excellent work, especially over the recent months, which have been characterized by significant volume increases in line with our customers’ demands. We are convinced that we will continue to successfully serve the high demands in the USA in future and, in doing so, make an important value contribution within the BENTELER Group."
The decision to retain the plant follows the expiration of the long stop date as contractually agreed between the BENTELER Group and Tenaris. BENTELER terminated the agreement under and pursuant to the terms and conditions in the stock purchase agreement.