California Steel Industries, Inc. (CSI) Announces New Pipe Mill Startup in Conjunction with 30-Year Anniversary

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California Steel Industries, Inc. (CSI)

Sep 26, 2014, 07:10 ET

FONTANA, Calif., Sept. 26, 2014 /PRNewswire/ -- California Steel Industries, Inc. (CSI) today announced that its subsidiary, CSI Tubular Products, Inc. (CSITP), has produced the first pipe off its new electrical resistance welded (ERW) pipe mill at the Company's site near Fontana, California, and is taking fourth quarter customer orders for the new mill, as it grows its existing pipe business.

Electric resistance welded pipe exits the mill at California Steel Industries' new ERW Pipe Mill, capable of producing up to 400,000 tons per year and diameters up to 24 inches. (PRNewsFoto/California Steel Industries, Inc)

Concurrently with the start-up announcement, CSI today celebrated its 30-year anniversary in business with an invitation-only tour of the new mill. Cost of the state-of-the art facility, including installation, is more than $100 million. CSITP is a wholly owned subsidiary of CSI, encompassing the company's entire pipe business, including sales and production from its existing No. 1 Pipe Mill and the new No. 2 Pipe Mill facilities.

No. 2 Pipe Mill produced its first pipe on August 25. It will feature API (American Petroleum Institute) grade high-strength line pipe, using induction welding technology. The mill also features full body ultrasonic lamination testing and ultrasonic weld seam inspection.

With the two pipe mills, CSITP now offers finished API pipe sizes of 4.5 inches to 24 inches in diameter and up to 80 feet in length, with wall thickness of 0.156 to 0.75 inches in various high-strength grades. Previously, the Company was limited to 16 inches in diameter, up to 60 foot lengths, and 0.406 inch wall thickness.

Annual production capacity on the new mill is expected to be approximately 400,000 net tons, bringing CSITP's total tubular product capacity to over 600,000 tons. At capacity, the new No. 2 Pipe Mill's additional tonnage is expected to generate approximately 100 new production and logistics jobs.

In addition to its CSITP production, CSI's flat-rolling operations produce hot rolled, cold rolled and galvanized sheet products, with a total rolling capacity approaching 3 million tons.

CSI President and CEO Toshiyuki "Ted" Tamai said CSI is proud to have reached 30 years as a strong and viable steel manufacturer, with no layoffs of regular employees in the Company's history.

He added that the new pipe mill represents the largest, and one of the most successful, capital investment projects undertaken during those 30 years.

"I congratulate our CSI team and our suppliers and contractors for a job well done in bringing the new pipe mill online so efficiently, on-time and on-budget," he said. Key suppliers and contractors include SMS-Meer GmbH (welding and forming supplier), MillTech Co. Ltd. (supplier of most of the finishing equipment), General Electric Sensing & Inspection Technologies GmbH, NOV Tuboscope, Kent Electric Co., and Ledcor Construction, Inc.

CSI currently employs approximately 1,100 people and is the leading producer of steel products in the Western United States based on tonnage billed. Its shareholders are JFE Steel Corporation of Japan, and Vale S.A. (Vale) of Brazil.

For more information on CSI, please visit our website at www.californiasteel.com. For inquiries on pipe sales, call CSITP at 909-350-6259; for flat-rolled sales, call CSI at 909-350-6414.

Photo - http://photos.prnewswire.com/prnh/20140926/148718

SOURCE California Steel Industries, Inc. (CSI)