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Borusan Mannesmann finalises acquisition of Berg Pipe

Published by , Senior Editor
World Pipelines,


Established in 1958 by Borusan Group as its first industrial venture, Borusan Mannesmann has recently finalised an acquisition in the United States, further scaling up its presence in the global market. Through a transaction of US$ 162 million, the company has acquired 100% of Berg Pipe, one of the leading manufacturers of large-diameter line pipe in the USA.

Borusan Mannesmann finalises acquisition of Berg Pipe

In line with its global growth strategy of expanding its manufacturing capacity in target markets, Borusan Mannesmann has acquired Berg Pipe, a corporation operating in the US for the past 44 years, with two facilities located in Florida and Alabama.

Borusan Mannesmann has been operating steadily in the US since 2014, with a facility located in Baytown, Texas. With this acquisition and a second facility being constructed in Baytown, where production will start in 2023, the company will own four manufacturing plants in the US.

The company's total manufacturing capacity in the US will reach 1 million t, and around US$1 billion in turnover. With this acquisition, Borusan Mannesmann will have a total of 11 facilities, located in Türkiye, Italy, Romania, and the US, as well as a production capacity of nearly 2 million t and 2800 staff members by the end of 2023.

Noting that Borusan Mannesmann has added sustainable value to Türkiye since its inception, Borusan Group CEO Erkan Kafadar commented on the acquisition that was carried out in line with Borusan Mannesmann's strategy of localisation across global markets: "Pipe manufacturing, the first industrial sector in which we operate as Borusan Holding, and its first industrial venture Borusan Mannesmann has been adding value to our country for the past 65 years. It contributes to the country's economy by way of its exports to global markets. As Türkiye's number one brand in its sector, our company has been focusing on expanding into global markets to promote sustainable growth. Having scaled up its growing presence since the early 2000s across different pipe segments with its facilities operating in Italy, the US, and most recently, in Romania, Borusan Mannesmann's recent acquisition of Berg Pipe strengthens the company's presence as a key player in the North American energy pipes market, which we believe holds great potential. In addition, Borusan Mannesmann happens to be one of the largest Turkish industrial investors in the United States. As part of its sustainable growth strategy, our company will continue to evaluate opportunities to help increase its share in target markets.”

Borusan Mannesmann entered the European automotive market after it acquired the Vobarno precision pipe 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 additional investment in its facilities in Gemlik, Türkiye in 2018. Kafadar said: "In line with our sustainable growth and globalisation strategy, we achieved remarkable success over the course of nine years after commissioning a facility in 2014 with an investment of US$150 million in the US energy pipe market. With this facility in Baytown, Texas, where we manufacture oil country tubular goods and line pipe for the energy sector, we received the 'Pipe and Tube Manufacturer of the Year' award three times from American Metal Market, one of the most prestigious pipe industry publications in the United States. Thanks to the new investment we have now launched in Baytown, which will be finalised 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."

Considering Borusan Mannesmann's past success and prestige in exporting large-diameter line pipes from Türkiye to the US, following the acquisition of Berg Pipe, the company will now be considered a ‘local player’ in the North American large diameter pipe market. Kafadar explains: "Berg Pipe owns two facilities, one in Florida, where longitudinal seam-welded pipes are manufactured, and one in Alabama, where spiral seam-welded large-diameter pipes are manufactured. Having championed remarkable growth in the energy sector recently, the company stands out as a leading supplier of major pipeline projects in the United States, which is a country with great market potential especially now that it has evolved from its role of an energy importer to that of an energy exporter. By acquiring Berg Pipe, a company with a total manufacturing capacity of 550 000 t, we have secured a strategic position in the large-diameter pipe sector."

Read the article online at: https://www.worldpipelines.com/business-news/17042023/borusan-mannesmann-finalises-acquisition-of-berg-pipe/

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US pipeline news