ISTANBUL, April 14, 2023 /PRNewswire/ -- Founded in 1958 by the Borusan Group as its first industrial company, Borusan Mannesmann has recently completed an acquisition in the United States, further expanding its presence in the global market. Through an operation of 162 million dollars, the company has acquired 100% of Berg Pipe, one of the main manufacturers of large diameter pipes in the United States. With this acquisition, Borusan Mannesmann reinforces its presence as a major player in the North American energy pipeline industry.
Founded 65 years ago by the Borusan Group - one of Turkey's leading conglomerates - as its first industrial company, Borusan Mannesmann has recently completed an acquisition in the United States, further expanding its presence in the global market. In line with its global growth strategy consisting of expanding its manufacturing capacity in target markets, Borusan Mannesmann has acquired Berg Pipe, a company that has been operating in the United States for 44 years with its two facilities located in Florida and Alabama.
Borusan Mannesmann has been operating stably in the United States since 2014, with a facility located in Baytown (Texas). With this acquisition and a second facility being built in Baytown, where production will begin in 2023, the company will own four manufacturing facilities in the United States. The total manufacturing capacity of the company in the United States will reach one million tons and around 1,000 million dollars in turnover. With this latest acquisition of Berg Pipe for $162 million, Borusan Mannesmann will have a total of 11 facilities located in Turkey, Italy, Romania and the United States, as well as a production capacity of almost 2 million tons and 2,800 employees at end of 2023.
"Our goal is sustainable growth"
Erkan Kafadar, CEO of the Borusan Group, noted that Borusan Mannesmann has brought sustainable added value to Turkey since its inception and commented that the acquisition was carried out in line with Borusan Mannesmann's localization strategy in global markets. :
"Tube manufacturing, the first industrial sector in which we operate as Borusan Holding, and its first industrial company Borusan Mannesmann have been adding value to our country for 65 years. It contributes to the country's economy through its exports to world markets. As Turkey's number one brand in its sector, our company has focused on expanding into global markets to promote sustainable growth, having expanded its growing presence since the early 2000s in different pipeline segments with its facilities in Italy. In the United States, and more recently in Romania, Borusan Mannesmann's recent acquisition of Berg Pipe reinforces the company's presence as a key player in the North American energy pipe market, which we believe has great potential. Borusan Mannesmann happens to be one of the largest Turkish industrial investors in the US As part of its sustainable growth strategy, our company will continue to evaluate opportunities to help increase its share in target markets."
Una nueva era money Borusan Mannesmann
Borusan Mannesmann entered the European automotive market after acquiring the Vobarno precision tube plant in Italy in 2001, its first international investment. As a result, today the company is the number one manufacturer in the automotive segment in Europe, thanks to the additional investment in its facilities in Gemlik, Türkiye in 2018. Kafadar has stated: "In line with our strategy of sustainable growth and globalization , we achieved remarkable success within 9 years after commissioning a US$150 million facility in the US power pipeline market in 2014. With this facility in Baytown, Texas, where we manufacture tubular products and line pipe for the energy industry, we have received the "Pipe and Tube Manufacturer of the Year" award three times from American Metal Market, one of the most prestigious publications in the industry. pipelines in the US Thanks to the new investment that we have started now in Baytown, which will be completed by the end of this year, we will be a local manufacturer also in the construction and general industry segments. This remarkable growth, coupled with the latest acquisition of Berg Pipe, marks the beginning of a new era for our company."
Borusan Mannesmann strengthens its presence in the United States
Given Borusan Mannesmann's previous success and reputation in exporting large diameter pipes from Turkey to the United States, following the acquisition of Berg Pipe, the company will now be considered a "local player" in the North American pipe market. large diameter. Kafadar stated, "Berg Pipe owns two facilities, one in Florida where longitudinal seam welded pipe is manufactured and another in Alabama where large diameter spiral seam welded pipe is manufactured. The company, which has experienced remarkable growth in the energy sector in recent times, stands out as one of the main suppliers of large pipeline projects in the United States, a country with great market potential, especially now that it has ceased to be an importer of energy to become an exporter. With the acquisition of Berg Pipe, a company with a total manufacturing capacity of 550,000 tonnes, we have secured a strategic position in the large diameter pipe sector."
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