NEW YORK Tritube USA, a
subsidiary of Chinas Jiangsu Qiyuan Group, is auctioning
off all the equipment at its Baytown, Texas, facility, where it
made hollow structural sections (HSS) and sprinkler pipe.
A company source confirmed the
auction but declined to comment further, while a spokeswoman
for the Baytown-based company didnt respond to
AMMs request for comment.
"They just decided to get out of
the tubing business. They didnt think their investment
was paying off," a domestic HSS mill source said, noting that
he would be bidding on the assets.
A second HSS mill source
welcomed Tritubes move. "Theres too much capacity
in the steel business in general," he said.
Tritube, which had the capacity
to produce 50,000 tons annually, was established in 2008 "to
fill the growing demand of a reliable light-wall
electric-resistant weld (ERW) tube manufacturing company,"
according to Jiangsu Qiyuans website. The facility was
officially opened in March 2009.
The auction includes five mills
capable of making ½-inch to 6⅝-inch tube,
according to auction house bidspotter.com. The mills
manufacturer is listed as Zhangjiagang Zhongyuan Pipe-Making
Co. Ltd., also a subsidiary of Jiangsu Qiyuan.
The sale includes everything
from hot-rolled coil to office chairs and forklifts, according
Tritube was officially
incorporated as LQY Welded Tube Inc., according to its website.
The phone number listed for LQY Welded Tube is no longer in