Nippon Steel Corp with Sumitomo Metal Industries which combined their operations in in 2011has, through their US OCTG subsidiary, Southern Tubes, entered into a definitive agreement to acquire the heat treatment and threading facilities for oil country tubular goods (OCTG) from WSP Houston.
The acquisition is to cost 3.4bn Yen ($43M). Southern Tubes plans to make an investment in to update the manufacturing facilities.
The USA is the world’s largest OCTG market and is expected to continue to grow with the development of shale gas and oil reserves.