Tex-Isle Inc is shifting from distributing to manufacturing steel tube and pipe for the oil industry using renewable energy and steel produced from recycled materials at its new electric-resistance welded (ERW) pipe-making facility in Robstown, Texas.
The Houston-based company, which has been a distributor of energy tubulars for more than 60 years, in January announced plans to open the new steel tubular mill in Robstown. The facility is scheduled for completion in the third quarter and will have the capacity to produce 350,000 tons per year, Tex-Isle said. Of that, 250,000 tons is slated for American Petroleum Institute (API) material and 100,000 for structural products.
Fastmarkets’ latest assessment for steel OCTG API 5Ct – Casing J55, fob mill US was $1,800-1,900 per short ton on May 25, up 19.35% month on month.
Fastmarkets assessed the price for steel ERW line pipe (X52), fob mill US at $1,925-1,975 per ton on May 25, the highest level recorded since Fastmarkets began assessing the market in 2016.
The new facility has been designed to run on 100% electric technology, allowing for the use of renewable energy to power the mill. In addition, the mill’s raw material will be supplied by manufacturers using electric-arc furnace (EAF) technology, which produce hot-rolled coil from as much as 85% recycled material.
The greenfield project will be adjacent to the company’s current oil country tubular goods (OCTG) heat treating, inspection and threading facility in Robstown.
“This facility represents our ongoing commitment to expanding our manufacturing capabilities, while also lowering our carbon footprint,” Tex-Isle president Chris Kayem said in a statement. “We are constantly evaluating further opportunities to achieve both of these goals.”
“We are going to be very distributor-driven and will only be selling OCTG products through a strict, authorized network,” Tex-Isle commercial director Andy Mejia said in a statement on Wednesday June 2. “Our goal is to bring value to being a distributor for Tex-Isle.”
The company is vetting distributors with the goal of selecting five by October in conjunction with mill trials.
Tex-Isle plans to continue to service its current customers as usual until January 1, 2022, when it will officially make the change to selling OCTG solely through its distribution network.