U.S Steel said the deal makes it North America’s largest producer of tubular products. Lone Star’s welded tubular business complements U.S. Steel’s predominantly seamless tubular product offerings. The transaction will boost U.S. Steel’s tubular manufacturing capability to approximately 2.8 million tons.
Shortly after this announcement, U.S. Steel in early April said it would form a $93 million joint venture with two South Korean companies to build a new domestic production facility for spiral welded pipe for the natural gas industry. The partners are Posco, South Korea’s leading steel producer and the world’s third largest, and tubular steel maker SeAH Steel Corp. The joint venture will be called United Spiral Pipe LLC. Spiral welded pipe represents a new market for U.S. Steel.