|  Business Description | | U. S. Steel Tubular Products is a manufacturer and distributor of quality tubular products with significant positions in two markets: oilfield products and specialty tubing products. Steel produces tubulars for energy, industrial, and automotive applications. Tubulars manufactured by U. S. Steel Tubular Products are produced through the electric resistance welding (ERW) technique. Two welders are coupled with two hot reduction systems to produce a broad range of sizes (1.00" to 16.125") and grades for customers throughout the world. U. S. Steel Tubular Products also produces a limited volume of hot rolled coils. Wide product range capability and quick delivery performance are the hallmarks of the company's operations. Steel is ISO 9001 registered, API certified, and QS 9000 registered. U. S. Steel Tubular Products also markets products made by other tube manufacturers under various tubular sourcing agreements (collectively referred to as alliances). These arrangements enhance the company's ability to serve its customers by providing one of the most diverse product offerings available in the industry. U. S. Steel Tubular Products expertise in manufacturing and marketing tubular products has played a vital role in its marketing strategy. In fact, for each primary tubular market served, U. S. Steel Tubular Products is recognized as "THE TUBULAR EXPERTS." Being recognized as the Tubular Experts enhances the U. S. Steel Tubular Products significant market presence in most key market segments.
| | Tubular Production Process | The U. S. Steel Tubular Products production method for ERW pipe includes a full-body normalizing technique that produces a pipe equal in performance characteristics to seamless pipe for most applications. The U. S. Steel Tubular Products ERW process, while more costly than the more common seam annealing method, allows these products to be used in hostile drilling environments and other demanding applications. The full complement of thermal treating facilities assists in the production of high strength grades for API products as well as mechanical tubulars. Also, U. S. Steel Tubular Products provides most of its OCTG tubular products threaded and coupled, including API threads and certain globally accepted premium threads that U. S. Steel Tubular Products is licensed to thread. The company operates several facilities to provide cutting and first stage production services for pipe and tubular products. U. S. Steel Tubular Products also sources manufactured tubes that are produced as ERW, both full-body normalized and seam annealed, as well as seamless pipe.
| | Oilfield Products | Energy tubular products (OCTG, API, Wildcat® brand and line pipe) are produced and finished by U. S. Steel Tubular Products for shipment throughout the world. The manufacturing process is capable of providing short time spans between order entry and delivery to the customer. U. S. Steel Tubular Products offers a wide product size range (1.315" to 20") of API grades and specifications, as well as several proprietary grades for OCTG and line pipe from in-house and alliance mills’ facilities. The exploration for gas and oil in deeper and more hostile environments requires larger sizes (>9-5/8") and higher grades for casing. Production of oil and gas requires the smaller sizes (<4-1/2") for tubing. The manufacturers in sizes <4-1/2" for OCTG are limited to a few domestic competitors and in sizes >10.75" competition is reduced to one other domestic OCTG manufacturer. Alliance sources for tubes include Bellville Tube (Bellville, TX); Texas Tubular Products (Longview, TX); U. S. Steel (McKeesport, PA) and Welspun (India). Under two commission arrangements, U. S. Steel Tubular Products also markets oilfield tubulars from Tex-Tube (Houston) and seamless OCTG and line pipe from Rocky Mountain Steel (Pueblo, CO). Distribution strategies and manufacturing schedules capitalize on these advantages. Additionally, U. S. Steel Tubular Products markets a software package for designing casing and tubing strings for deep well or shallow well applications. This widely accepted software package further positions U. S. Steel Tubular Products as "THE TUBULAR EXPERTS" to this important customer base.
| | Specialty Tubing Products | The U. S. Steel Tubular Products Specialty Tubing product line includes Drawn Over Mandrel (DOM) and As-Welded tubing. To produce DOM tubing, a welded tube is cold drawn through a die and over a mandrel to create precise dimensional characteristics. This product is ordered to exacting dimensional and steel chemistry specifications. The combination of steel sourcing flexibility, rolling mill gauge capability, welding and size reduction capability and the seven drawbenches allows the Company to offer the largest range of custom products to DOM users. The outside diameter range is from 0.5" to 15". Specialty Tubing - DOM is marketed globally through a network of U. S. Steel Tubular Products sales offices, agents and distributors to customers that include major automotive companies, hydraulic cylinder manufacturers and many diverse industrial users. In addition to DOM products, the company produces a wide range of As-Welded products for use in sophisticated axle systems and other mechanical applications. Customized sizes and grades are designed by U. S. Steel Tubular Products to meet unique customer requirements, further highlighting the company’s "TUBULAR EXPERTS" image.
| | Flat Rolled Products | Flat-rolled products are produced for a select group of regional customers that require small quantities of consistent sizes and grades on a regular basis. This product line aids in reclaiming scrap generated in the mill’s operations and balancing the EAF and the Rolling Mill’s operating cycles.
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