MST - Seamless Tube & Pipe, leading manufacturer of high-quality carbon and alloy seamless cold-drawn pipe and tube, announced Monday that its parent company Optima Specialty Steel, Inc. (OSS) has committed $25 million in capital to expand MST's operations and increase production capacity.
As part of the capital improvement project, MST will use $19 million to fund the acquisition of a highly specialized cold pilger mill and the construction of a new facility to house the mill. The 14,400 square foot building will also accommodate all of the related tools and processing equipment required to fully integrate the mill into the production process.
The remaining $6 million will be used to purchase a new, 377-foot atmosphere controlled furnace. MST said that the state-of-the-art furnace will improve material flow and reduce production time. Together, the new mill and furnace will diversify the company's product line, allowing it to expand its operational footprint in the markets it serves.
"The introduction of a new cold pilger mill and atmosphere controlled furnace enables us to expand our already robust tube and pipe offerings while simultaneously increasing our capacity by an additional 700 -1300 tons of product each month," said Les Whitver, Vice President of Operations for MST. "We are deeply committed to growing our presence in South Lyon and are thrilled that this project will allow us to offer a wider selection of products at highly competitive prices, creating jobs for the community in the process."
MST anticipates the new furnace will commence operations in April 2014. The cold pilger mill is projected to be fully operational in early 2015.