Oregon Steel Mills Plans $35M Facility

PORTLAND-Oregon Steel Mills will develop a new large diameter pipe-making facility at or near its existing mill here. Completion of the $35-million project is expected in the fourth quarter of next year.The project, as approved, would consist of two pipe mills with an annual capacity of approximately 150,000 tons, depending on product mix. The mills will be capable of producing API certified large diameter line pipe from 20 inches to 60 inches in diameter, in wall thickness of 1/4 inch to 1 inch, and in lengths of up to 80 feet. Oregon Steel Mills chief executive Jim Declusin says the placing of the new mill in Portland will make the company a more cost effective producer of line pipe as well as enhance its production capability and product offering, which are currently restricted to pipe up to 42 inches in diameter. A proposed package of incentives for OSM includes Enterprise Zone and Construction-in-Progress tax abatements as well as Governor’s Strategic Reserve Funds and other state tax credit programs. The new facility is expected to employ 200 people. OSM already employs 400 workers at its facilities on North Rivergate Boulevard, adjacent to the site of the proposed plant. Last month, OSM idled a large-diameter pipe mill in Napa, CA. At that time, the company said the operating margin opportunities in large-diameter pipe does not justify the allocation of steel plate from its Portland plate mill for conversion into large-diameter pipe.