Lone Star Technologies Inc. said Wednesday that it has agreed to form a joint Spiral Weld Mill venture with India’s Welspun Group. The new venture will be called Welspun-Lone Star Tubulars LLC.
Lone Star will have a 40 percent stake in Welspun-Lone Star Tubulars and Welspun Pipe Inc. will control 60 percent.
The cost of the venture is expected to be $66 million. Lone Star will provide up to $26.4 million. Profits from the joint venture will be divided based on ownership stakes.
The facility will be located in Lone Star’s customer base in the Southwest U.S. and is expected to be fully operational by early 2008. The plant will be able to produce up to 300,000 net tons annually of Spiral Welded Tubulars in the 24-inch to 60-inch outside diameter range.
Lone Star Technologies Inc. is a $1.4 billion holding company involved with the manufacturing and marketing of oilfield casing, tubing, and line pipe, specialty tubing products, such as finned tubes for heat recovery applications, and flat rolled steel and other tubular products and services.
Welspun Group is a manufacturer of tubular products and textiles in India.