Ameron Plans Steel Pipe Plant in Mexico
To meet the demand for steel pipe in Mexico, as well as major North American cities on the West Coast, Ameron International Corporation is planning to build a pipe plant outside of San Luis Rio Colorado, Mexico. This facility, which is estimated to be a total investment of $88 million, will produce pipe that is utilized in oil, gas, and water transportation industries. At this point, the sizes of the steel pipes that will be produced in the plant have not been made known and it is unclear just how many tons of steel will need to be procured for the plant to be built.
While the estimate for the total investment equates to $88 million, it is also estimated that around $50 million of the total will be needed for the first phase of construction. The plant is set to be built on 104 acres and will be serving not only Mexico, but major U.S. cities like San Diego and Los Angeles, as well. While it is has not been confirmed, a spokesman for the government of the Mexican state Sonora said this project may be supplying a pipeline that will connect the United States and San Luis Rio Colorado.
Ameron International Corporation is a subsidiary of National Oilwell Varco (NOV), a leading supplier of the equipment and systems used in the gas and oil industries throughout six continents. Ameron manufactures highly-engineered products for various industries including fiber-glass composite pipe which is used to carry fluids like chemicals or oil. NOV acquired Ameron back in 2011 is a cash transaction that valued the company at $772 million.