Lakeside Steel plans new pipe plant in Alabama
WELLAND, Ont.: Lakeside Steel Inc. plans to build a new manufacturing facility in Thomasville, Ala. that when fully operational will double the steel pipe and tubing manufacturer’s production capacity.
The company, based in Welland, Ont., said the plant will add 192,000 tons of capacity and create sufficient new capacity on OCTG casing products to satisfy growing demand from US customers, most of whom are in the southern US.
The $40 million project, to be financed through a combination of equity and debt, will put $22 million into the plant and $18 million into inventory and working capital.
Lakeside Steel said the new plant will create up to 120 new jobs in Thomasville.
Construction is expected to begin in the fall and production for the OCTG and line pipe market is expected to begin in December 2011.
Chris Roik, Lakeside’s senior most experienced operations manager in Welland, Ontario, has been appointed Vice President and General Manager of the new facility in Alabama and will commence his responsibilities for this project immediately.
The company has invested $9.5 million in its Welland operations over the previous three years and is spending an additional $6 million during the balance of fiscal 2011.