Tex-Isle Inc. will open a new ERW tubular mill in Robstown, Texas, in the third quarter. The facility will be adjacent to Tex-Isle’s existing OCTG heat treating, inspection and threading facility.
When complete, the mill will build on Tex-Isle's Asset Based Distribution model and provide feedstock to its other facilities, the company claims. Tex-Isle has embarked on a vertical integration initiative over the past decade that has led to the creation of two new divisions: Tex-Isle Coating in George West, Texas, and Tex-Isle Processing in Robstown, Texas.
"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,” said Chris Kayem, Tex-Isle's president. “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."
The mill will be housed in a 60,000-square-foot facility, bringing the company's total under roof to 250,000 square feet, and is designed to produce steel tubes from 2.375 inches to 8.625 inches OD. – Overall, the facility will have the ability to produce 350,000 tons per year, of which, 250,000 tons is slated for API material with the remaining 100,000 tons reserved for structural products. The addition of structural tubulars will deliver much needed supply to the rapidly growing Corpus Christi and South Texas regions, executives claim.
"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,” said Billy Sias, Tex-Isle's business development manager. “Lastly, Steel Dynamics will be opening a new state of the art electric arc furnace steel mill right up the road in Sinton. We feel this is an ideal manufacturing footprint which tightens our supply chain."