BENTELER to sell its steel tube plant in Shreveport/Louisiana (USA) to Tenaris
Salzburg/Shreveport (USA), July 7, 2022. The BENTELER Group is selling its steel tube plant in Shreveport, USA, to Tenaris. The sale is subject to regulatory approvals and is expected to be completed by the end of 2022. Tenaris is a leading global manufacturer and supplier of steel pipe products and related services for the world’s energy industry and other industrial applications.
The decision was made after a thorough analysis: BENTELER successfully completed the ramp-up of the Shreveport plant in 2020. Today, the plant is one of North America’s most modern and efficient steel tube plants.
The decision supports the BENTELER Group's transformation strategy, which is focused on profitable growth and financial resilience. Against the background of the changing trading environment, the significant impact of the Covid-19 pandemic and the Ukraine war, and increasing market volatility, it is essential for companies to ensure significantly greater financial stability. This is particularly important when it comes to investments needed in the future.
Digitalization and new technologies offer additional opportunities and, at the same time, are associated with changed production methods and extensive investments in future technologies.
Specifically, the comprehensive transformation processes in the steel industry related to digitalization and decarbonization require companies to make strategic decisions today about future investments to benefit from market developments and secure future growth.
"It is part of our corporate culture to constantly evolve. The sale of the steel tube plant in Shreveport makes the BENTELER Group even stronger, more flexible and financially more resilient," explains Ralf Göttel, CEO of the BENTELER Group. "We successfully completed the ramp-up of the Shreveport plant in 2020. Today, the Shreveport plant is one of North America’s most modern and efficient steel tube plants. The plant is thereby able to realize its full potential in the context of the strong oil and gas market in the US.”
Ralf Göttel continues: "We are convinced that we have found an excellent strategic buyer. As part of the Tenaris Group, the Shreveport plant and its employees would benefit from market developments and sustainable future growth."
In the coming months, the BENTELER Group and Tenaris will work to prepare a smooth transition. The sale is subject to regulatory approvals and is expected to close by the end of 2022.