Turkish firm Borusan Mannesmann has acquired Berg Pipe, which makes large diameter steel pipe in Mobile and in the Florida panhandle.
Borusan says it paid $162 million for the company, which has been operating in the U.S. for 44 years.
“With this acquisition, Borusan Mannesmann now strengthens its presence as a leading player in the North American energy pipe industry,” the company said in a press release today.
Borusan Mannesmann has had operations in the U.S. since 2014, with a plant in Baytown, Texas, and another expected to open there this year, it says in the press release.
“The company’s total manufacturing capacity in the U.S. will reach 1 million tons, and around 1 billion U.S. Dollars in turnover,” the press release says. The firm also has operations in Turkey, Italy and Romania, with a production capacity of 2 million tons and some 2,800 workers.
Borusan Group CEO Erkan Kafadar said, “Our company has been focusing on expanding into global markets to promote sustainable growth. Having scaled up its growing presence since the early 2000s across different pipe segments with its facilities operating in Italy, the U.S., and most recently, in Romania. Borusan Mannesmann’s recent acquisition of Berg Pipe strengthens the company’s presence as a key player in the North American energy pipes market, which we believe holds great potential. In addition, Borusan Mannesmann happens to be one of the largest Turkish industrial investors in the United States. As part of its sustainable growth strategy, our company will continue to evaluate opportunities to help increase its share in target markets.”
According to European steel news site GMK Center, Borusan Mannesmann has been in a legal dispute over tariffs with the U.S. Department of Commerce.
Europipe GmbH, which sold its interest in Berg to Borusan, plans to use the proceeds to strengthen its own pipe production in Germany.