PANAMA CITY — A recent boost in natural resource development in the U.S. has paid off big for Panama City-based manufacturing company Berg Steel Pipe Corp.
The company recently secured the largest order in its 35-year history, one that will ensure continuous production at both Berg Steel Pipe in Panama City and Berg Spiral Pipe in Mobile, Ala., through 2015.
“We are excited about several new pipeline projects on the horizon after a few slow years in the steel pipe market,” said Berg's Director of Sales Jonathan Kirkland. “The United States and Canada continue to develop their own natural resources, which creates demand for pipelines … to get the product to market.”
The order came from Dallas-based Energy Transfer Partners and consists of more than 480,000 net tons, or 600 miles, of large diameter pipe.
Energy Transfer Partners will use the material for its ET Rover Pipeline Project, which will deliver natural gas from the Marcellus and Utica shale areas in the Northeastern U.S. to markets in the central U.S. and Canada when complete.
Berg Pipe President and CEO Ingo Riemer said the project is a result of a long and successful business relationship between the two companies, coupled by Berg’s ability to provide product from both its Panama City and Mobile plants.
“Berg is in a very unique situation by being able to serve the North American market with both lighter wall, spirally welded pipe produced in Mobile and heavier wall, longitudinally welded pipe produced in Panama City,” Riemer said.
Kirkland said the Berg Pipe order also will likely have a positive impact on job creation in the area — at Port Panama City where Berg is based, and the Bay Line Railroad, which Berg utilizes to ship its product.
Berg conducts two shift operations with roughly 250 employees at its Panama City plant. The Mobile plant also runs two shifts with about 200 employees.
“The Rover Pipeline project is a great success for our group of companies,” Kirkland said. “The teamwork between our mills and the pride of workmanship exhibited by our colleagues are some of the many reasons Berg continues to be the leader in North American pipe manufacturing.”
