Boomerang Purchases Southern Tube

Boomerang Tube is pleased to announce that we’ve purchased 100 percent of the ownership interests in Southern Tube LLC (STL) from Nippon Steel & Sumikin Oil Field Services Inc. The ownership change is effective immediately, and STL will operate as a wholly owned unit of Boomerang.

After exploring expansion opportunities for the past two years, Boomerang made this strategic acquisition based on the high quality of STL’s equipment, its focus on quality and customer service and its good transportation links – the new Houston facility location is within a mile of Greens Port and has the potential for easy rail access. The acquisition will also enable Boomerang to significantly expand its production capacity and product offering, which will now include seamless tubes and processing of green tube.

“Although a number of facilities have come available over the past few years, until now, Boomerang had not found assets that would help it move forward with its core mission to be the most responsive supplier of OCTG products in the business,” said John Fontana, chairman of Boomerang. “With STL, the combined company is positioned to bring an even greater range of OCTG products to our customers who are seeking our quality domestic-sourced steel tubing.”

The STL acquisition will allow Boomerang to process overflow production from its Liberty plant and increase its capacity to produce finished alloy tubes to almost 400,000 tons per year. Boomerang can also utilize STL’s facility, only 37 miles away from its 487,000-square-foot Liberty site, to handle the limited third-party processing of OCTG performed at its current location.  Furthermore, Boomerang Tube also intends to re-establish the rail siding on STL’s site and offer direct rail shipments to customers.

“We think combining STL and Boomerang will be beneficial for all of the customers in the OCTG space,” said Fontana. “Contracts with suppliers, customers and service providers – as well as STL employees – are not going to change for now. We know that with both companies’ capabilities, it will be easy to expand our offering and overall market presence.”

The 300,000-square-foot STL site has benefited from significant capital investment over the last few years. The site now boasts a state-of-the-art Danieli soaking furnace, Olympus ultrasonic inspection and advanced threading capabilities. With STL’s culture of quality and leading equipment, Boomerang is confident that it will be able to maintain and improve its established production standards and quality assurance methods.

“Boomerang is proud to have been chosen by Nippon Steel & Sumikin Oil Field Services to take on the ownership and operation of STL, and we look forward to merging these two quality-driven cultures to continue to provide the best service in our industry,” Fontana added. “Overall, the STL team will remain intact, with operations reporting up through Boomerang Tube’s President, Sudhakar Kanthamneni, and with sales reporting to and coordinating with Boomerang VP of sales, Kelly Hanlon and the finance team reporting up to Bob Horsfield, Boomerang Tube CFO.

Throughout the operation of its Liberty, Texas facility, Boomerang has established a superb record of service, quality and supply. The site is currently working four shifts, around the clock, to meet the demand for domestic OCTG.

“Boomerang Tube is proud to have been chosen by Nippon Steel & Sumikin Oil Field Services to take on the ownership and operation of STL, and we look forward to merging these two quality-driven cultures to continue to provide the best service in our industry,”

John Fontana - Chairman of Boomerang Tube Tweet