TMK IPSCO, the US subsidiary of global pipe manufacturer TMK, has announced plans to reduce the number of work hours used to manufacture products such as electric welded steel pipe at its facilities in Blizeville, Arkansas, Camanche, Iowa and Wilder, Kentucky. p>
In addition, Wilder's plant, which produces eight-inch welded pipes, was already idle. In total, the number of working hours at TMK IPSCO pipe welders will be reduced by about 30 percent. The decision to cut back on unprofitable welded pipe operations was driven by increasing pressure from cheaper imports.
"We have seen strong pressure from unfairly traded imports, particularly welded products, over the course of a year and a half. Since the International Trade Commission (ITC) announced its preliminary ruling, we have seen a significant surge in imports of Korean welded pipe," said Dave Mitch, President and CEO of TMK IPSCO.
He noted that nearly half of the OCTG welded pipe sold in the United States in 2013 was made in foreign countries. TMK IPSCO is one of the largest North American manufacturers of welded and seamless pipes and premium fittings for the oil and gas industry. TMK operates at 28 production facilities around the world.
While this decision will result in reduced working hours and contracting work and possibly layoffs, TMK IPSCO expects this to have little or no impact on EBITDA as the division continues to shift its product portfolio towards seamless pipes and premium connections.
