LA: SB International to Invest $32.5M in Bossier Parish, Create 82 Jobs
19 Jun, 2014
Gov. Bobby Jindal and SB International Inc. President and CEO Satish Gupta announced Centric Pipe LLC, an SB International affiliate, will make a $32.5 million capital investment to renovate and expand the former Northwest Pipe facility in Bossier City, Louisiana. Based in Dallas, SB International formed Centric Pipe, which purchased the Bossier City facility in March 2014 and acquired the assets of Northwest Pipe’s oil country tubular goods business.
The project will create 82 new direct jobs, with an average salary of $50,000 per year, plus benefits. Another 209 new indirect jobs will result, according to Louisiana Economic Development estimates, for a total of more than 290 new jobs in Northwest Louisiana. Centric Pipe will retain 52 existing employees at the Bossier City site, and the company estimates 34 construction jobs will be created by the project.
Gov. Jindal said, “SB International chose Louisiana because of the Bossier City area’s highly educated workforce, the strong work ethic of our people, and Louisiana’s improved business climate. SB International is among a growing list of companies that are investing in Louisiana because we have implemented policies that are strengthening our economy and business climate. Louisiana now has more people working than ever before and today’s announcement is great news for Northwest Louisiana, but our work does not stop here. We will continue to build a better business climate and attract companies that want to invest and expand, so that we can create even more jobs and a greater quality of life for Louisiana families.”
Centric Pipe will manufacture and supply welded-steel pipe and tubular products for domestic clients in the oil and gas industry. The $32.5 million investment will add new equipment and a rail spur to the facility. The company has begun hiring at the Bossier City facility and expects to start facility upgrades and construction of the railroad spur by the first quarter of 2015, with completion of all improvements expected by the end of 2017.
“We are very bullish on the energy sector in the U.S. and Canada, and we believe that the demand for oil and gas drilling will continue to grow,” Gupta said. “Providing American-made products to our customers is paramount, and growth like ours furthers the United States’ global position and independence within the energy sector. Further, Louisiana is a great advocate and true partner for business expansion and new operations. Various state and local programs and the low-tax environment make it very welcoming to grow here, and the state has an impressive transportation infrastructure that supports American manufacturing. SB International is especially excited about Louisiana’s regional and economic significance within the energy sector.”
LED began working with SB International on the project in January 2014. To secure the project, Louisiana offered SB International a $2 million performance-based grant for infrastructure improvements at the site. Centric Pipe will receive the comprehensive solutions of LED FastStart® – the nation’s No. 1-ranked state workforce development program – at no cost, and the company is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption programs.
“The North Louisiana Economic Partnership worked diligently with its state and local partners to facilitate this acquisition, which ensures the growth and survival of this longtime Bossier City company,” NLEP President Scott Martinez said. “Northwest Pipe Company has had a presence in the local oil and gas industry since the 1960s. We applaud SB International and Centric Pipe LLC for investing in North Louisiana and for retaining the 52 existing jobs and adding new jobs in our community.”
“This is wonderful economic news for Bossier City and Northwest Louisiana,” said Mayor Lorenz “Lo” Walker of Bossier City. “We welcome SB International and Centric Pipe LLC as our newest business members of the community and applaud them for not only bringing new employment opportunities to Bossier City but also maintaining existing jobs.”
“Bossier is proud to welcome SB International and Centric Pipe to our community, joining us in this growing industrial endeavor to meet the energy infrastructure needs of our state and region, as we better position our community in the ever-growing international field of energy production,” said President David “Rocky” Rockett Jr. of the Greater Bossier Economic Development Foundation. “The Greater Bossier Economic Development Foundation also wants to thank Governor Jindal and his fine staff at LED. They, along with our regional partners at NLEP, worked with us to ensure the longevity of this facility and the tenure of its employees in Bossier.”
About SB International
Founded in 1981, SB International Inc. is a privately held steel distribution company headquartered in Dallas, with an office in Houston. The company is primarily focused on the energy sector and is a leading supplier of high-quality oil country tubular goods and line pipe to the oil and gas industry in the U.S. and Canada, as well as an importer and exporter of specialized steel products. The company began as an exporter of nonferrous metal products, including scrap and off-spec steel, subsequently expanding into importing and exporting stainless steel products, and becoming a global trader of prime products in the domestic and international markets. For more information, visit SBISteel.com.
About Centric Pipe
Founded in 2014 to acquire the oil country tubular goods assets of Northwest Pipe Company, Centric Pipe is an American-made pipe manufacturing company. Based in Bossier City, Louisiana, at the former Northwest Pipe Company facility, Centric Pipe will manufacture and distribute steel pipe and tubing via rail and highway to clients in the oil and gas industry throughout the U.S. and Canada.