Benteler Steel Announces First U.S. Production Plant in Louisiana, Adding 675 New Jobs

German-based Benteler Steel/Tube plans a $900 Million investment that will transform the economic landscape for Northwest Louisiana, highlighted by an estimated creation of 675 new jobs, in what will be the the company’s first U.S. production plant.  By establishing a production site in the U.S.A. Benteler Steel/Tube GmbH will strengthen its presence in one of the most important growth markets for global oil- and gas-exploration. Together with Louisiana Gov. Bobby Jindal, the company announced it will build the new production plant in Shreveport, Northwest Louisiana.

“We are pleased to announce that Louisiana will be home to the first U.S. hot rolling tube mill for Benteler Steel/Tube,” said Matthias Jaeger, President and CEO Benteler Steel/Tube GmbH. “Decisive factors were among others the excellent conditions in Shreveport-Bossier concerning logistics, infrastructure and the availability of a strong and talented workforce. This is the perfect place to step up our activities in the U.S. market for Oil Country Tubular Goods (OCTG) and to expand our presence in the U.S. With the growing demand for high-quality steel tubes for exploratory drilling in the U.S., and Louisiana’s proximity and access to energy customers, Benteler Steel/Tube’s Louisiana plant is poised to play an important role in meeting U.S. domestic energy needs. We would like to thank the state of Louisiana and all those who helped to make this project possible for their great cooperation and commitment. We are looking forward to a long lasting and fruitful partnership.” For this project Benteler received more than 100 applications from 13 states.

In the initial phase, Benteler will build a hot-rolling tube mill with new and sophisticated manufacturing technology for the production of seamless tubes. A memorandum of understanding has been agreed upon between Benteler, the State of Louisiana, Louisiana Economic Development and other key community partners. The groundbreaking on the new facility is scheduled for spring 2013. Completion and facilitating are planned for the 2nd half of 2015. In a second phase, the company will build an Electric Arc Furnace at the same location. The total investment will be nearly $ 900 million. Both plants will create an estimated 675 full time jobs when at full capacity.

The Benteler Group is a global enterprise that employs 30,000 employees at 170 locations in 38 countries.  Benteler Steel/Tube Division develops and produces customized tubes for selected customer groups and applications. Being a specialist for the manufacturing and processing of seamless hot-rolled steel tubes and seamless cold-drawn precision steel tubes Benteler Steel/Tube, headquartered in Paderborn, Germany, serves international customers in the automotive, OCTG/line pipe, heat transfer, hydraulics/precision engineering, and construction sectors.  The facility will be Benteler Steel/Tube’s first U.S. production facility.

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