HOUSTON, Jan. 14, 2021 /PRNewswire/ -- Tex-Isle Inc. (Tex-Isle), an industry leading provider of OCTG, Line Pipe, and associated services, today announced plans to open a new steel tubular mill located in Robstown, Texas in the 3rd quarter of 2021. In 2009 Tex-Isle embarked on a vertical integration initiative, which, over the past decade has included the creation of two new divisions: Tex-Isle Coating in George West, TX and Tex-Isle Processing in Robstown, TX. The greenfield project will be adjacent to the company's current OCTG heat treating, inspection, and threading facility in Robstown. When complete, the mill will build on Tex-Isle's Asset Based Distribution® model and provide feedstock to its other facilities. The mill will add to Tex-Isle's growing footprint in the coastal bend area and bring Tex-Isle's total capital investment in the region to nearly $100 million.
Chris Kayem, Tex-Isle's President, discussing the project. "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, bringing the company's total under roof to 250,000 square feet, and is designed to produce steel tubes from 2.375" - 8.625" 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.
Billy Sias, Tex-Isle's Business Development Manager, added. "We are very excited about this project. 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 twenty 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 project is another step for Tex-Isle in an ongoing effort to be a leader in the industrywide push for greater ESG stewardship. The facility is designed to run on 100% electric technology; allowing for the use of renewable energy to power the mill. In addition to all electric manufacturing, the pipe mill's raw material, hot-rolled coil, will be supplied by manufacturers using EAF technology, which produce their product from as much as 85% recycled material. Kayem describes the pipe mill as, "making a green, environmentally conscious product in a traditionally carbon intensive manufacturing process. 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."
Tex-Isle is a third generation, family-owned business, founded by Hans Kayem in 1959.