March 7, 2006 — Oregon Steel Mills, Inc. has initiated a marketing agreement with Maverick Tube Corp. The agreement provides for Maverick Tube to be the exclusive worldwide marketing and sales representative for Rocky Mountain Steel Mills' (RMSM) seamless pipe products.
The agreement, which commences immediately, is for a minimum of 48,000 tons per year.
Rocky Mountain Steel Mills' Pueblo, Colo., seamless pipe mill has production capabilities of approximately 150,000 tons annually, depending on product mix. The mill, which started up in December 2005, is expected to produce at an annual rate of 100,000 tons with an emphasis on quench and temper seamless casing products. The mill’s seamless pipe products are utilized in various markets but, in particular, energy markets in the recovery of natural gas and oil.
Jim Declusin, Oregon Steel Mills' President and CEO, stated, "We are excited about this alliance as it enables us, through an established industry participant, to position our seamless products in the oil country tubular goods markets immediately. We anticipate continued high demand for all of our energy-related products and, assuming that selling prices remain favorable, we expect the energy part of our business to record strong financial performance into the foreseeable future."
Maverick Tube Corp. is a St. Louis, Mo., based manufacturer of tubular products in the energy industry for exploration, production, and transmission, as well as industrial tubing products (steel electrical conduit, standard pipe, pipe piling, and mechanical tubing) used in various applications.
Located in Pueblo, Colo., Rocky Mountain Steel Mills is a division of Oregon Steel Mills, Inc. The division produces steel rail, rod and bar, and seamless tubular products. Oregon Steel’s other main division, the Oregon Steel Division, produces steel plate, coil, small and large diameter line pipe, casing and structural tubing from plants located in Portland, Ore., and Camrose, Alta., Canada.