Transcript Slide 1

USS Tubular Products
United States Steel Corp.
Tubular Products
NASPD Convention
Boston, MA
October 10, 2008
Joe Alvarado
Vice President-Tubular Operations
1
USS Tubular Products
TUBULAR PIONEERS
U.S. Steel has long been associated
with the
“Tubular Products business” . . .
2
USS Tubular Products
Working with the energy industry for over 100 years

Made first steel pipe in the US

Introduced welded casing prior to 1913

Introduced seamless drill pipe prior to 1913

Introduced seamless casing in 1924

Original API specifications developed from USS’s National
Tube Specifications in 1926

Originated combination casing strings

Introduced first pipe with seamless couplings

Introduced first upset drill pipe and tubing

Introduced first round thread

Introduced “deep-well” casing – P110

Introduced buttress thread for casing and tubing

Developed V150 casing
3
USS Tubular Products
The Beginning

1869- John & Harvey Flagler build a 20 x 125 ft. lapweld pipe mill in
Boston, MA - primarily produced boiler tubes

1870- National Tube Works Company is created and moved to the
center of the iron and steel industry- Pittsburgh, PA

1895- First seamless tube is produced to be used to construct bicycle
frames

1899- National Tube Works is consolidated with other pipe
manufacturers to form the National Tube Company

1901- USS acquires National Tube Company (NTC)

Post 1900- Automobile demand increased creating a demand for
higher quality steel tubing- Secondly, the rapid increase in auto
production created a demand for gasoline

1914- NTC produces first seamless steel drill pipe in the oil industry
followed shortly by the development of the first seamless steel
couplings
4
USS Tubular Products
National Tube Company

Comprised of multiple steel making facilities as well
as tubular manufactures

Installed the first integrated pipe mill in the U.S.

Installed the first seamless tube mill in the U.S.

Developed the double piercing process and the rotary
rolling process which extended the commercial size
range of seamless pipe from 8” to 26” O.D.

At one time owned the largest pipe mill in the world
5
USS Tubular Products
Evolution
National Tube Works
National Tube Company (Pittsburgh)
Johnson Company
National Tube Company (Lorain)
Christy Parks Works
National Tube Company (McKeesport)
National Tube Company
United States Steel
Texas Works – Baytown
Geneva Works
Gary Tube Works
Fairless Pipe Mills
Oil Well Supply Company
Fairfield
6
USS Tubular Products
Evolution
Pre 1981
Post 1981
Sold assets
Lorain
National
Gary
Geneva
Fairless
Oil Well Supply
Baytown
Christy Park
Seamless
Electric Resistance Weld
Continuous Weld
Dbl. Submerge Arc Weld
Mechanical Tubing
Pressure Vessels
Bomb casings
Galvanizing
End Grooving
Coupling Shops
Tubing Upsetters
Threading Units
Heat Treat Facilities
Lorain
Fairfield
Camp Hill
Closed Facilities
7
USS Tubular Products
Committed to grow energy business
LSS Acquisition
finalized June
2007
2007: Lone Star Acquisition
After 25 years in a difficult energy and steel business...
Leader in the
OCTG Market
U. S. Steel reaffirmed its commitment to being the
Leader in the Line
Pipe Market
leading producer of Tubular Products in North
America
Growing the
International
Market
•The combined entities are currently North America’s largest
manufacturer of Tubular OCTG and Standard & Line Pipe products
•Over 2 Million Tons of Seamless and ERW production capabilities
9
USS Tubular Products
Evolution
1981 –
June 2007 - Present
June 2007
Expanded
Products and
Operations
Lorain
Fairfield
Seamless
Electric Resistance Weld
Lorain
Fairfield
Camp Hill
Mechanical Tubing
Boiler Tubing
Pressure Vessels
Slitting Capabilities
Inspection Units
Coupling Shops
Tubing Upsetters
Threading Units
Heat Treat Facilities
Camp Hill
Texas Operations (Lone Star)
Bellville
Tubular Processing Services
Tubular Threading & Inspection Serv.
Wheeling Machine Products
Apolo Tubulares (Brazil)
Fintube
Texas Tubular Products
10
USS Tubular Products
Minnesota Ore
Operations
Hamilton Works
United Spiral Pipe
Lake Erie Works
Great Lakes Works
Gary Works
Lorain Tubular
CampHill
Mon Valley Works
Granite City Works
Fintube Technologies, Inc.
U. S. Steel Tubular
Products, Inc.
Bellville Operations
Wheeling Machine Products
Fairfield Tubular
Texas Operations
Wheeling Machine Products
Tubular Processing Services Division
Tubular Threading and Inspection Services Division
Wheeling Machine Products
11
11
USS Tubular Products
Current capabilities- OVER 2 Million Tons
Seamless
Lorain #3
Size
10”-26”
Lorian #4
1.9”-4.5”
Fairfield
4.5”-97/8”
ERW
Texas Ops #1
Size
7”-16”
Texas Ops #2
1.9”-7”
Texas Ops Bellville
1.9”-4.5”
Camp Hill
85/8”-20”
Texas Tubular Products 23/8”-41/2”
Processing
Rotary Roll, Direct Roll, Q&T,
Straighten, Bevel, HydroTest,
WMS, UT Insp.
Mandrel, SRM, Straighten,
Bevel, HydroTest, WMS
Rotary Roll, Mandrell, SRM,
Straighten, Normalize, Q&T,
Straighten, Bevel, HydroTest,
WMS, UT Insp., Thread & Cpl.
Processing
FBN, Q&T, Straighten, Bevel,
HydroTest, UT Insp, Thread & Cpl.
FBN, Q&T, Straighten, Bevel,
HydroTest, UT Insp,. Thread & Cpl.
FBN, Straighten, Bevel,
HydroTest
Seam Anneal, Straighten, Bevel,
HydroTest, WMS
Seam Anneal, Straighten, Bevel,
HydroTest, WMS
12
U. S. Steel Tubular Products
Product Size Offerings
Inches
1
5
10
15
20
25
30
50 60
Texas Operations
Camp Hill
Bellville
ERW
Seamless
Texas Tubular *
Spiral
Welded
Apolo
Lorain #4
* Identifies alliances
Lorain #3
Fairfield
United Spiral Pipe
USSK
13
13
U. S. Steel Tubular Products
Product Mix Profile
S&L
33%
OCTG
62%
Specialty
5%
14
USS Tubular Products
Market Share OCTG Imports
3
2003: 26%
2004: 30%
2.5
2005: 38%
2006: 42%
2
2007: 42%
1.5
2008 through
September
52%
65%
55%
52%
45%
42%
42%
38%
35%
30%
26%
2.4
2.079
1
25%
1.912
15%
1.663
1.096
0.5
5%
0.795
0
-5%
2003
2004
2005
Source: Preston Pipe & Tube, US Census
2006
2007
2008-Sept
15
USS Tubular Products
Market Share Line Pipe Imports
3.5
2003: 41%
2004: 50%
3
2005: 56%
2.5
2006: 56%
2007: 61%
2
61%
56%
2008 through
September
61%
56%
1.5
2.965
2.395
50%
1
0.5
61%
1.99
1.079
1.196
0.854
41%
0
0.4
2003
2004
2005
Source: Preston Pipe & Tube, US Census
2006
2007
2008-Sept
16
USS Tubular Products
Manpower
Increased Capability in 2008
Fairfield
- Hot Mill
- Finishing
Lorain
- #3 Mill
- #4 Mill
Camp Hill
17
USS Tubular Products
USS Tubular
Products
Continued
commitment to
distributors
Maintains a
‘No Inventory’ policy
Sales Channels
US and Canada through distribution
USS committed to Stocking Distributors
Management of inventory, stocking locations, repairs and returns
Efficient solicitation of smaller customers
Work closely with
Distributors’ quarterly
forecasts
Internationally through distribution
Support major oil & gas company requirements for both domestic
and international activity
Internationally through USS International Sales Group
Solicits trading companies, and countries with State owned Oil companies
and /or requirements of local agent representation
18
United States Steel Corporation
Tubular Products
Competitive Advantages:
Premium Welded & Seamless Tubular
Value-Added Supplier
Major Player in Strategic Market Segments
Full Complement of Product Sizes
1.9 inches to 26 inches diameter Seamless
.140 inches to 2.312 inches wall
1 inch to 20 inches diameter Welded
.125 inches to .670 inches wall
Premium Threads – Star Seal
Significant Asset Base
Fairfield Seamless Mill – World Class Manufacturing Facility
Texas Operations – New #5 Heat Treat Line
Lorain #3 Seamless – Large Diameter Heat Treat Line
Raw Materials Base
Research and Development
19
USS Tubular Products
TUBULAR PIONEERS
U.S. Steel has long been associated
with the
“Tubular Products business” . . .
20
USS Tubular Products
United States Steel Corp.
Tubular Products
NASPD Convention
Boston, MA
October 10, 2008
Joe Alvarado
Vice President-Tubular Operations
21