Borusan Mannesmann, which was established 65 years ago as the first industrial venture of Borusan, one of the leading groups in Turkiye, bought Berg Pipe, which has been operating for 44 years with 2 facilities in the US states of Florida and Alabama.
Borusan Mannesmann has acquired 100% of Berg Pipe, one of the USA’s highest quality and capacity companies, with a total transaction of $162 million.
In his speech at the signing ceremony, Borusan Group Chief Executive Officer (CEO), Erkan Kafadar, stated that Borusan Mannesmann has created sustainable added value for Turkiye since the day it was founded, and said that they made purchases in line with Borusan Mannesmann’s localization strategy in global markets.
Stating that Borusan Mannesmann, the first industrial area in which we operate as Borusan Holding, and the first industrial enterprise Borusan Mannesmann has added value to the country for 65 years, Kafadar said:
“It contributes to our country’s economy with its exports to world markets. For our company, which is Turkiye’s number one brand in its sector, we focus on global markets that will ensure sustainable growth for a long time. Borusan Mannesmann, which has increased its assertion in different pipe segments with the facilities it has established in Italy, the USA and most recently in Romania since the beginning of the 2000s, with the Berg Pipe acquisition we have made, it will become one of the most important players in the North American energy pipes market, which has a great potential in the coming years.
In addition, Borusan Mannesmann is positioned as one of the largest Turkish industrial investors in the USA. Our company will continue to evaluate all opportunities that will increase its claim in target and potential markets within the scope of its sustainable growth strategy.”
“With our acquisition, we started a new era for our company”
Erkan Kafadar said that Borusan Mannesmann bought the Vobarno precision pipe factory in Italy in 2001 and started its breakthroughs in the European automotive market with this first international investment.
Emphasizing that they are the number one manufacturer in Europe in the automotive segment with the additional investment made in their Gemlik facilities in 2018, Kafadar continued:
“In line with our sustainable growth and globalization strategy, we have achieved very important successes in 9 years with the facility we established in 2014 with an investment of $150 million for the US energy pipe market. With our Texas-Baytown facility in the USA, where we produce drilling and transportation pipeline pipes for oil and natural gas, we were awarded the ‘Best Pipe Manufacturer of the Year’ award 3 times by the American Metal Market, one of the most prestigious publications of the pipe industry in the USA.
With an investment of $50 million that we started in our facility and will be completed this year, we have expanded our existing drilling and line pipe production activities and become a local manufacturer in the construction and general industry segments. With the acquisition we made, we started a new era for our company.”
Stating that Borusan Mannesmann is the only and most prestigious brand that can export large diameter line pipes for energy pipes from Turkiye to the USA, Kafadar emphasized that they now have the status of “local player” in large diameter pipes with the purchase of Berg Pipe.
Kafadar said, “Berg Pipe has two facilities in Florida, a longitudinal submerged arc welded facility and a spiral welded facility in Alabama. The company, which has shown great growth in the energy sector in recent years, stands out as the supplier of all major pipeline projects in the USA, which has a great potential and has turned from an importer country to an exporting country for world markets. With our purchase of Berg Pipe, which has a total production capacity of 550 thousand tons, our goal is to reach a more strategic position in large diameter pipes.”
The company’s production capacity will reach 2 million tons
According to the information given at the meeting, Borusan Mannesmann is expected to become one of the most important players in the North American market in energy pipes with this big step taken within the scope of its strategy of becoming a local player in global markets.
Borusan Mannesmann has been operating strongly with its factory in Texas, USA since 2014. The company will increase the number of facilities in the USA to 4 with the second facility planned to start production in Baytown in 2023 and with this acquisition. The total production capacity of the company in the USA will reach 1 million tons, and the US turnover will reach approximately $1 billion.
By the end of 2023, Borusan Mannesmann’s total number of facilities in Turkiye, Italy, Romania and the USA will reach 11, its production capacity will reach 2 million tons, and its total number of employees will be 2,800 by the end of 2023.
Source: AA / Prepared by Irem Yildiz