At a press conference held today, April 13, Turkish pipe producer Borusan Mannesmann signed an agreement through its US-based subsidiary Borusan Mannesmann Pipe US Inc. to acquire Berg EUROPIPE Holding Corporation, US-based subsidiary of German pipe producer Europipe GmbH.
The $162 million acquisition includes Berg EUROPIPE's submerged longitudinal welded pipe plant in Florida and spiral welded pipe plant in Alabama. The plants have a total annual production capacity of 550,000 mt.
Stating that the company aims to become one of the significant players in the North American energy pipe market with this acquisition, Erkan Kafadar, CEO of Borusan, noted that the company’s production capacity in the US will reach 1 million mt, along with the company’s Texas plant and the Baytwon plant which is scheduled to start production. The company's turnover in the US is expected to be around $1 billion, depending on fluctuations in steel prices.
Borusan Mannesmann will have a total of 11 plants and a production capacity of two million mt by the end of this year.
