India-based Welspun Gujarat Stahl Rohren Ltd (Welspun), the world's second biggest large diameter steel pipe maker, has now established itself in the US with the commissioning of the $150 million spirally welded pipe manufacturing facility in the city of Little Rock, in Arkansas.
The facility, built on an area of 740 acres, has an annual capacity of 350,000 mt of pipes with diameter of 609.6-1,524 mm and wall thickness of 6-25 mm, used primarily in transporting oil and gas. The hot rolled coils used as feedstock are bought in the US domestic market.
The start of commercial production was put off twice, first from December 2008 to early February 2009, and then to late April, due to both delays in adjustment works and the adverse situation in the market.
Currently, the unit employs 300 workers, and can expand to employ 500 once fully operational.
In 2009, Welspun plans to sell 20-30 percent of the pipes in the local market and export 70-80 percent to the countries of both Americas.
As SteelOrbis previously reported, the plant was originally projected to cost $100 million, but Welspun spent $150 million to help expand the scope of the work at the plant, add storage and to apply technological advancements.