U.S. Steel Corp. announced Wednesday its plans to build a new domestic pipe-making plant in Pittsburg, CA by entering a $93 million joint venture with two South Korean companies.
U.S. Steel has agreed to partner with South Korea's leading steel producer POSCO, and also with tubular steelmaker SeAH Steel Corp., to build the new California plant in which both U.S. Steel and POSCO will each hold a 35 percent ownership stake, while SeAH will take a 30 percent interest.
The new facility, expected to open in 2008, will expand U.S. Steel Corp's pipe-making capabilities, producing spiral-welded pipe in the range of 24 to 64-inch outside diameter for the natural gas industry.
The venture, now called United Spiral Pipe LLC, will position U.S. Steel to take advantage of the large-diameter line pipe market in North America, which has seen demand grow after the recent announcement of new natural gas transmission projects.
U.S. Steel spokesman John Armstrong commented, "Spiral welded pipe would be a new market for us."
After construction of the new plant is completed, U.S. Steel and POSCO plan to supply the mill with hot rolled coil, while United Spiral Pipe will be responsible for marketing the finished products.