Texas to get new tubular steel mill

Tex-Isle Inc., headquartered in Houston, has announced plans to open a tubular steel mill in Robstown, Texas, in the third quarter of 2021. The provider of oil country tubular goods (OCTG), line pipe and associated services, says it embarked on a vertical integration initiative in 2009 that has included the creation of two new divisions: Tex-Isle Coating in George West, Texas, and Tex-Isle Processing in Robstown. The greenfield project will be adjacent to its current OCTG heat treating, inspection and threading facility in Robstown. 

According to the company, the new mill will build on its Asset Based Distribution model and provide feedstock to its other facilities, bringing Tex-Isle's total capital investment in the region to nearly $100 million.

Chris Kayem, Tex-Isle president, says,  "A pipe mill is the natural progression of our long-term strategic plan, which started over a decade ago. Our Asset Based Distribution model of vertical integration combines the traditional benefits of distribution with the scope of a manufacturer, creating a unique blend of services for our customers. Once complete, the new mill will dive a level deeper into our cost structure as we continue our crusade against inefficiencies in the supply chain. Having these facilities, along with private ownership and a strong balance sheet, allows us to deliver customer-first service and flexibility. which I'm certain will pay dividends to our clients, our community, and our company for years to come."

The mill will be housed in a 60,000-square-foot facility and is designed to produce steel tubes from 2.375 inches to 8.625 inches in outside diameter. It will be able to produce 350,000 tons per year, of which, 250,000 tons are slated for American Petroleum Institute material, with the remaining 100,000 tons reserved for structural products, according to the company. Tex-Isle says the addition of structural tubulars will deliver much-needed supply to Corpus Christi and south Texas more generally.

Billy Sias, Tex-Isle business development manager, says,  "The growth in the coastal bend area around Corpus Christi provides enormous opportunity for our company. Our growing facility in Robstown has numerous strategic advantages. We are an operating foreign trade zone, we are located on a Union Pacific mainline and we are within 20 minutes of the deep-water Port of Corpus Christi. At the port, we are developing property for a lay down and storage facility and have been one of the major bulk cargo customers over the past number of years. Lastly, Steel Dynamics will be opening a new state of the art electric arc furnace (EAF) steel mill right up the road in Sinton. We feel this is an ideal manufacturing footprint which tightens our supply chain."

The facility will run totally on electric technology, allowing for renewable energy to be used to power the mill, Tex-Isle says. In addition to all-electric manufacturing, the pipe mill's raw material, hot-rolled coil, will be supplied by manufacturers using electric arc furnace (EAF) technology from as much as 85 percent recycled material. 

Kayem adds, “This facility represents our ongoing commitment to expanding our manufacturing capabilities while also lowering our carbon footprint. We are constantly evaluating further opportunities to achieve both of these goals."