Oregon Steel Mills to reopen pipe mill

Oregon Steel Mills to reopen pipe mill

Oregon Steel Mills Inc. said Thursday it plans to resume pipe production at its Rocky Mountain Steel Mills plant in Pueblo, Colorado, and that manufacturer Oil Country Tubular Goods LLP (OCTG LLP) has agreed to purchase all output. Colorado Seamless Corp, an affiliate of Houston’s OCTG LLP, made an agreement with Portland-based Oregon Steel to buy all products produced at the Pueblo mill. Colorado will ship the products to an OCTG facility in Houston where the products will be finished. The plant, which has been idle since November 2003, produces seamless casing, coupling stock, as well as standard and line pipe. The mill has the capacity to produce both carbon and heat-treated tubular products. Production is expected to start in December at an annual rate of 100’000 net tons with an emphasis on quench and temper seamless casing products. Oregon Steel also said it will construct a coiled tubing facility in Alberta Canada, as part of an agreement with a Canadian investment group. Oregon Steel, through a subsidiary, will own 51 percent of the joint venture and will be the managing partner. Construction is expected to be completed in the first quarter of 2006.