Low global oil prices have forced Tenaris' Mexican unit Tamsa to reduce steel tube production by 10%-15% this year, the company said.
"Due to the drastic fall in the American and Canadian markets caused by the global situation of the oil price, we experienced in the first two months of the year a reduction between 10-15%," the steel tube maker said. "However, we expect a recovery to start in the forthcoming months and to stabilize."
The company expects a reduction in steel tube consumption in Mexico of around 15% this year, Tenaris' North American area manager German Cura said during a conference call regarding the company's quarterly results Thursday. Global consumption of oil country tubular goods could fall by 30% in 2015 compared to 2014, the company said.
Last year, Tamsa was moving forward a project to install a new thermal treatment plant in its Veracruz facility by May, enabling it to increase productivity by 200,000-250,000 mt/year of high added-value products.