Tenaris invests $90 million to modernize Pennsylvania OCTG manufacturing

(WO) — Tenaris will invest more than $90 million to modernize its steelmaking and seamless pipe manufacturing operations in Pennsylvania, expanding automation and production capabilities to support growing demand from the U.S. oil and gas industry.

The investment will fund upgrades at the company's steel shop in Koppel and seamless pipe mill in Ambridge, where automation and equipment improvements are expected to increase productivity, improve reliability and enhance employee safety. The projects build on approximately $150 million that Tenaris has invested at the facilities since acquiring them in 2020.

Planned upgrades include improvements to the electric arc furnace at the Koppel steel shop, higher-capacity ladles and the addition of a steel bar yard. A new bar-cutting area at the Ambridge facility will streamline material handling between the two sites and improve manufacturing efficiency.

Tenaris also plans to upgrade the scrap shredder at its recycling operation adjacent to the Koppel steel shop following its subsidiary Steel Recycling Services' acquisition of SA Recycling. The company said the investment will further strengthen its vertically integrated manufacturing process.

"This improvement plan is another important step to bring our long-term vision for our Ambridge and Koppel facilities to fruition," said Guillermo Moreno, president of Tenaris U.S.

Moreno said the company remains focused on supplying U.S. oil and gas operators with domestically manufactured products while continuing to invest in automation and production efficiency.

Construction on the projects is expected to begin in the coming months, with most upgrades scheduled for completion during the second half of 2027.