Lakeside Steel plans to build a standalone, state-of-the-art end finishing and heat treatment facility for tubular steel products and is adding thermal processing capabilities at its Welland, Ont. operations.
New Lakeside Steel plant will address growing unconventional oil and gas demand throughout North America.
WELLAND, Ont.: Lakeside Steel Inc. plans to build a state-of-the-art end finishing and heat treatment facility for tubular steel products, and in a separate announcement, it’s adding thermal processing capabilities at its Welland, Ont. operations.
The manufacturer of oil country tubular goods (OCTG) said the new plant costing between $12 million and $15 million, will vertically integrate finished and upgraded tubular products in American Petroleum Institute-certified J, L, N and P grades, to address growing demand from unconventional gas and oil development throughout North America. Commercial supply will begin in February next year.
The new plant will process tubing manufactured at the company’s facility in Welland for upsetting, heat treatment and threading, and will provide threading for casing products manufactured at the new casing facility currently being constructed in Thomasville, Ala.
The company expects to build the facility on a separate parcel of land and is currently scouting locations. The plant will operate as a standalone business and create 80 jobs.
Lakeside is also adding thermal processing capabilities to the Welland facility, Lakeside Steel Corp., a wholly owned subsidiary.
“Thermal processing treatment such as product normalizing is a key constraint in this industry,” said Ron Bedard, president and COO of Lakeside Steel. “This project will help Lakeside produce higher value-added product from our Welland facility.”
Normalization processing involves the application of heat treatment to tubular products to realign grain structure, enhance properties and strengthen the product. Lakeside said it has already begun refurbishing equipment to enable this value-added process.
Lakeside said the refurbishment, which will create 12 new jobs at the Welland facility, means fully end-finished and normalized tubing products can be processed in-house and shipped directly to oil country customers in the US and Canada, rather than having to go to outside processor.
“Processing capacity for OCTG products is in short supply across the continent and therefore normalized product is at a premium,” Bedard added. “Bringing this function in-house will keep us competitive while maintaining quality and certainty of supply for our customers.”.
Initially, the Welland operation will process 2.375-inch and 2.875-inch tubing. Later, the processing is expected to accommodate 4-inch and 5-inch casing from Lakeside’s 2-8-inch Mill.