VAM USA plant starts production

Staff report

YOUNGSTOWN

A Vallourec Star subsidiary’s new steel-pipe threading facility is into production.

VAM USA LLC, a supplier of threaded connections for the oil and gas industry in the U.S., began producing the first pipes for commercial sale at its new premium threading plant on Ohio Works Drive in May.

The recently constructed facility, which is expected to hire 80 workers, manufactures connections for casing and tubing for oil and gas applications.

“We’re obviously happy that they’re up and running,” Mayor John McNally said.

Construction on the $81.6 million steel-pipe threading plant began last year.

In March 2014, the company made a deal with the city to get a 10-year, 75 percent real-property tax abatement, a $369,000 water and wastewater grant for infrastructure, and a retention pond to prevent flooding. Also, the company was not required to pay water and wastewater tap-in fees and permits.

The company also paid $364,548 for 27 acres owned by the city, and spent $3.1 million to purchase 10 to 12 acres at the Ohio Works Drive site, which included the former Genmak Steel building.

“The Youngstown facility offers increased premium capacity in close proximity to the local shale plays, enhanced response timing and the latest in finishing process technology,” VAM USA President Eric Shuster said in a statement. “Our rigorous commissioning and qualification process ensures the highest quality standards. The new threading plant is integrated with VAM USA’s sister company Vallourec Star’s pipe rolling mills, which enhances efficiencies and brings additional synergies that benefit our customers and further differentiates us from competition.”