OR WAIT null SECS
Borusan Mannesmann, a Turkish steel pipe manufacturer, pushes its presence into the North American energy pipe industry.
Borusan Mannesmann has acquired 100% of Berg Pipe, a manufacturer of large-diameter line pipe in the United States, in a transaction worth $162 million. The acquisition pushes Borusan Mannesmann's position in the North American energy pipe sector.
The company has been operating in the United States since 2014, with a facility located in Baytown, Texas. The acquisition of Berg Pipe, which has two facilities in Florida and Alabama, adds to the company's U.S. operations. In addition, Borusan Mannesmann is constructing a second facility in Baytown, scheduled to start production in 2023.
By the end of 2023, the company will own four manufacturing plants in the United States, increasing its total manufacturing capacity in the country to 1 million tons and generating around $1 billion in turnover. Including its 11 facilities in Turkey, Italy, Romania, and the United States, Borusan Mannesmann will have a production capacity of nearly 2 million tons and 2,800 staff members.
Borusan Group CEO Erkan Kafadar commented on the acquisition, stating, "As Turkey's number one brand in its sector, our company has been focusing on expanding into global markets to promote sustainable growth. Borusan Mannesmann's recent acquisition of Berg Pipe strengthens the company's presence as a key player in the North American energy pipes market, which we believe holds great potential."
Regarding the company's expansion in the U.S., Kafadar said, "With this facility in Baytown, Texas, where we manufacture oil country tubular goods and line pipe for the energy sector, we received the 'Pipe and Tube Manufacturer of the Year' award three times from American Metal Market, one of the most prestigious pipe industry publications in the United States. This remarkable growth, coupled with the latest acquisition of Berg Pipe, marks the beginning of a new era for our company."
Following the acquisition, Borusan Mannesmann will be considered a "local player" in the North American large-diameter pipe market. Kafadar explained, "Having championed remarkable growth in the energy sector recently, [Berg Pipe] stands out as a leading supplier of major pipeline projects in the United States, which is a country with great market potential, especially now that it has evolved from its role of an energy importer to that of an energy exporter. By acquiring Berg Pipe, a company with a total manufacturing capacity of 550 thousand tons, we have secured a strategic position in the large-diameter pipe sector."