Oil industry casing and tubing manufacturer Lakeside Steel Inc. says it has received approval from its board of directors to build a finishing and heat-treatment facility. The new facility will provide vertical integration of finished and upgraded tubular products and supply a growing market for “unconventional” oil and gas drilling, the company says.
Lakeside expects to start construction in the next three months at a cost of between $12 million and $15 million and expects to complete construction by February 2012. The company says it has placed orders for all of the critical equipment.
The new plant will process tubing manufactured at the company’s facility in Welland, Ont. for heat treatment and threading. It will also provide threading for casing products to be manufactured at the company’s new casing facility currently being constructed in Thomasville, Ala.
Once operational, the new end-finishing and heat-treatment facility will create up to an additional 80 direct full-time jobs. The company expects that the new facility will be built on a separate parcel of land as a stand-alone business.
The company say it’s currently in advanced talks over several potential locations for the plant and plans to announce a site March 15.
The new plant will enable Lakeside to produce high value-added American Petroleum Institute-certified OCTG products required by drilling operations in North America. Ron Bedard, president and chief operating officer of the company, said, “This is another important step in Lakeside Steel providing higher value-added products to our current and future customers.”
“This investment will provide certainty of supply to satisfy our customers supply chain needs,” Bedard said.
“These assets, in addition to previous investments made by Lakeside Steel in both Canada and the U.S., provides the company with some of the most modern, cost-effective assets in the industry.”
Lakeside’s customers includes large oil and gas end users, as well as distributors across North America.