November 3, 2015 (Midland, Texas) – The Midland Development Corporation and the Midland City Council have approved an economic development agreement with Tenaris to establish a service center for the storage, inspection and preparation for the running of steel tubular goods for the energy sector. Tenaris has committed to new annual payroll of $3.3 million and $36 million in new capital investment by December 31, 2020.
The Midland Development Corporation agreement is a loan forgivable of up to $2,000,000 based on performance of the creation of capital investment and payroll. Funds will be distributed after capital investment and payroll criteria are met by Tenaris. A portion of the loan will be forgiven as certifications of certain performance criteria are met. The agreement will require that the business bring new money into the community by providing primary jobs and the retention of jobs will also be required for a certain number of years.
In addition, Midland County Commissioners’ Court has approved a property abatement for economic development with Tenaris for the construction and operation of the new facility. The abatement is the standard 5-year term with a 20% reduction annually. The new capital investment will consist of commercial offices, railway infrastructure, warehouse and equipment. Midland competed with several West Texas cities for this facility. Mike Bradford, Midland County Judge states, “Midland County is pleased to have a relationship with such a high-quality corporation as Tenaris.”
Tenaris is a leading global manufacturer and supplier of steel pipe products and related services for the oil and gas industry. From its new location, the company will supply oil country tubular goods (OCTG) and accessories, sucker rods and coiled tubes to the Permian Basin oil and gas industry.
“We would like to thank Midland County Judge Mike Bradford, the Midland Commissioners Court, Mayor Morales and the City Council as well as the Midland Development Corporation for welcoming Tenaris and for their support in helping move this project forward,” said Roberto De Hoyos, Vice President of Public Affairs, Tenaris, USA. “We look forward to becoming a valued member of the Midland community, sharing our long-lasting commitment to excellence in all aspects of our operations.”
The Midland Development Corporation (MDC) incentivizes qualified employers who create and retain a diversified job market in the greater Midland, Texas, region. MDC promotes business expansion and job creation through an established business climate and a strong community. MDC is an effective steward of sales tax revenue to efficiently grow Midland’s economic stability and the quality of life.
Tenaris is a leading global manufacturer and supplier of steel pipe products and related services for the world’s energy industry and other industrial applications. Our customers include most of the world’s leading oil and gas companies and our revenues amounted to US$10.3 billion in 2014. Employing around 27,800 people worldwide, we operate an integrated network of steel pipe manufacturing, research, finishing and service facilities with industrial operations in the Americas, Europe, the Middle East, Asia and Africa and a direct presence in most major oil and gas markets. www.tenaris.com.
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