OCTG Imports Continue To Impact Operations At Tenaris

OCTG (oil country tubular goods) imports continue to impact operations at Tenaris and its operations in Pennsylvania and Ohio.

This according to Tenaris US President Luca Zanotti on the matter.

Last month, three U.S. senators urged the Biden administration on to reduce the import quota on oil and gas drilling pipes from South Korea, saying it has affected companies with operations in Ohio and Pennsylvania.

According to a Reuters article, Sherrod Brown of Ohio and Bob Casey and John Fetterman of Pennsylvania, said the market for products known as oil country tubular goods, used for drilling, extraction and transport of oil and natural gas,
has declined and resulted in layoffs by companies with U.S. operations.

“Imports of OCTG into the United States continue to be a problem for the domestic industry and threaten its ability to compete,” says Zanotti in an emailed statement. “Over the past 15 years, we have significantly strengthened our industrial footprint in the States, including expanding into Pennsylvania through the acquisition of IPSCO in 2020. In the years since the acquisition, we have invested 140 million USD to upgrade equipment for safety and environmental performance, mainly at our Koppel steel shop.”

In May, Tenaris announced it was reducing its workforce at its facilities in Pennsylvania and Ohio due to an influx of imports of OCTG into the United States. The steel shop in Koppel, Pennsylvania, is not affected.

“Unfortunately, OCTG imports have impacted our operations in Pennsylvania and Ohio where we were forced to adjust our workforce. We applaud the action by US Senators Sherrod Brown of Ohio, and Bob Casey and John Fetterman of Pennsylvania, who have called on the US administration to reduce the current import quota set on Oil Country Tubular Goods (OCTG) from South Korea,” added Zanotti in his email statement.

“We need additional measures of defense to protect the viability of the domestic OCTG industry.”

According to the Reuters report, the senators said OCTG companies with U.S. operations have seen more than 220 layoffs or reductions in workforce at plants in Ohio, Pennsylvania, Oklahoma, and Texas.