Posco, SeAH and U.S. Steel to build steel pipe plant in U.S.

Joint venture between Korean and U.S. steel giants will produce 300,000 tons of steel pipe annually

By Dave Hannon -- Purchasing, 3/3/2008 7:01:00 AM

A newly formed three-way joint venture between South Korean steelmakers Posco and SeAH Steel Corp. and U.S. Steel has begun construction on a steel pipe plant in Pittsburg, Calif. that will churn out as much as 300,000 net tons of steel products each year beginning in 2009.

At the ground breaking ceremony on Friday, U.S. Steel CEO John Surma said, “North America is experiencing strong demand for spiral welded pipe due to a number of construction projects for new natural gas and oil transmission infrastructure. Both the capacity and location of the spiral welded facility will favorably position the joint venture to build a presence in the rapidly growing North American large-diameter line pipe market.”

The plant will cost about $136 million to build and will produce steel pipe products primarily for sale in the U.S. and Canada. It will be operated by the joint venture, which is called United Spiral Pipe. Posco and U.S. Steel each each owns a 35% stake in the joint venture, while the remaining 30% is held by SeAH Steel.

The San Francisco Chronicle reports that the new steel pipe plant will be located adjacent to the existing US Steel-Posco Industries plant that manufactures sheet metal products.