Our Press Release on Berg Pipe Acquisition


Our Press Release on Berg Pipe Acquisition

Established in 1958 by Borusan Group as its first industrial venture, Borusan Mannesmann has recently finalized an acquisition in the United States, further scaling up its presence in the global market. Through a transaction of 162 million U.S. Dollars, the company has acquired 100% of Berg Pipe, one of the leading manufacturers of large-diameter line pipe in the United States. With this acquisition, Borusan Mannesmann now strengthens its presence as a leading North American energy pipe industry player.


Established 65 years ago by Borusan Group – one of Türkiye's leading conglomerates – as its first industrial venture, Borusan Mannesmann has recently finalized an acquisition in the United States, further scaling up its presence in the global market. In line with its global growth strategy of expanding its manufacturing capacity in target markets, Borusan Mannesmann has acquired Berg Pipe, a corporation operating in the U.S. for the past 44 years with its two facilities in Florida and Alabama.


Borusan Mannesmann has been operating steadily in the United States since 2014, with a facility located in Baytown, Texas. With this acquisition and a second facility being constructed in Baytown, where production will start in 2023, the company will own four manufacturing plants in the United States. The company's total manufacturing capacity in the U.S. will reach 1 million tons and around 1 billion U.S. Dollars in turnover. With this latest acquisition of Berg Pipe for 162 million U.S. Dollars, Borusan Mannesmann will have a total of 11 facilities located in Türkiye, Italy, Romania, and the United States, as well as a production capacity of nearly 2 million tons and 2,800 staff members by the end of 2023.


"Our focus is sustainable growth."


Noting that Borusan Mannesmann has added sustainable value to Türkiye since its inception, Borusan Group CEO Erkan Kafadar commented on the acquisition that was carried out in line with Borusan Mannesmann's strategy of localization across global markets:

“Pipe manufacturing, the first industrial sector in which we operate as Borusan Holding, and its first industrial venture Borusan Mannesmann has been adding value to our country for the past 65 years. It contributes to the country's economy by way of its exports to global markets. As Türkiye's number one brand in its sector, our company has been focusing on expanding into global markets to promote sustainable growth. Having scaled up its growing presence since the early 2000s across different pipe segments with its facilities operating in Italy, the U.S., and most recently, in Romania, Borusan Mannesmann's recent acquisition of Berg Pipe strengthens the company’s presence as a key player in the North American energy pipes market, which we believe holds great potential. In addition, Borusan Mannesmann happens to be one of the largest Turkish industrial investors in the United States. As part of its sustainable growth strategy, our company will continue to evaluate opportunities to help increase its share in target markets."


A new era for Borusan Mannesmann


Borusan Mannesmann entered the European automotive market after it acquired the Vobarno precision pipe plant in Italy in 2001, its first international investment. As a result, today the company is the number one manufacturer in the automotive segment in Europe, thanks to additional investment in its facilities in Gemlik, Türkiye in 2018. Kafadar said, "In line with our sustainable growth and globalization strategy, we achieved remarkable success over the course of 9 years after commissioning a facility in 2014 with an investment of 150 million U.S. Dollars in the United States energy pipe market. With this facility in Baytown, Texas, where we manufacture oil country tubular goods and line pipe for the energy sector, we received the ''Pipe and Tube Manufacturer of the Year” award three times from American Metal Market, one of the most prestigious pipe industry publications in the United States. Thanks to the new investment we have now launched in Baytown, which will be finalized by the end of this year, we will be a local manufacturer also in the construction and general industry segments. This remarkable growth coupled with the latest acquisition of Berg Pipe marks the beginning of a new era for our company".


Borusan Mannesmann strengthens its presence in the U.S.


Considering Borusan Mannesmann’s past success and prestige in exporting large-diameter line pipes from Türkiye to the United States, following the acquisition of Berg Pipe, the company will now be considered a ''local player'' in the North American large-diameter pipe market.  Kafadar explains, “Berg Pipe owns two facilities, one in Florida, where longitudinal seam-welded pipes are manufactured, and one in Alabama, where spiral seam-welded large-diameter pipes are manufactured. Having championed remarkable growth in the energy sector recently, the company stands out as a leading supplier of major pipeline projects in the United States, which is a country with great market potential, especially now that it has evolved from its role of an energy importer to that of an energy exporter. By acquiring Berg Pipe, a company with a total manufacturing capacity of 550 thousand tons, we have secured a strategic position in the large-diameter pipe sector.”