Tianjin Pipe Corp., a state-backed maker of seamless steel pipe, is considering selling its Texas-based steel mill for at least $1.3 billion, according to people familiar with the situation.
(Bloomberg) — Tianjin Pipe Corp., a state-backed maker of seamless steel pipe, is considering selling its Texas-based steel mill for at least $1.3 billion, according to people familiar with the situation.
The company is gauging interest in the Gregory, Texas-based site mostly from industry peers based in the US, the people said, asking not to be identified discussing a private matter. It is in talks with potential advisers on the sale, one of the people said.
Deliberations are preliminary and Tianjin Pipe could still decide to keep the asset, the people said. A representative for Tianjin Pipe couldn’t immediately comment on the matter.
After studying potential sites beginning in 2007, Tianjin Pipe selected the 410 acre site near Corpus Christi, and planned to invest more than $1 billion in the seamless steel pipe manufacturing facility, according to the website of TPCO America, the project’s operating unit. The second phase of the site’s development, which could employ as many as 600 workers, was targeted for completion in 2019.Â
Tianjin Pipe is one of the largest seamless pipe makers in China with an annual production capacity of 3.5 million tonnes, according to its website.
–With assistance from Winnie Zhu.
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