Canadian Manufacturer Invests $50 Million to Build New Facility in Lackawanna, New York

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Welded Tube USA brings steel production back to “Steel Town”

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“We see great potential for our product in the US market and a great opportunity to develop that potential in the Buffalo Niagara region.”

Welded Tube USA, Inc. Executive Chairman Barry Sonshine announced today that the company has finalized agreements to purchase 45 acres in the Tecumseh Business Park on the former Bethlehem Steel facility in Lackawanna, New York. A subsidiary of Welded Tube of Canada, the company plans to invest approximately $50 million on the construction of a new facility that will house state of the art steel pipe mill equipment to supply pipe to the energy industry.

Welded Tube Vice President Robert Pike and Government Relations Director Joel Shapiro reached the agreement after months of negotiating with Tecumseh and Krog Corporation, the designated builder for the park.

In making the announcement, Mr. Sonshine expressed his gratitude for the strong support for the project that was offered by Erie County Executive Mark Poloncarz, Deputy County Executive Richard Tobe, New York State Senator Timothy Kennedy, and Lackawanna Mayor Geoffrey Szymanski. Mr. Sonshine also thanked Empire State Development Corporation and the Erie County Industrial Development Agency for the incentives they provided to ensure the feasibility of the project, and the Buffalo Niagara Enterprise for their project management assistance.

Welded Tube’s investment will occur in three phases, and consists of the construction of a 109,000 square foot manufacturing facility in phase one that would be expanded by an additional 34,000 square feet in phase two. The final phase would call for the construction of a 30,000 square foot building. If market and economic conditions are favorable, the company could hire as many as 121 employees by the completion of the three phases. The initial building construction is anticipated to be completed in February 2013 with production scheduled to begin in August of 2013.

“We see great potential for our product in the US market and a great opportunity to develop that potential in the Buffalo Niagara region,” Mr. Sonshine said during the announcement. “I would like to thank our project partners for the assistance they provided to our company and their commitment on this project,” Sonshine concluded.

Headquartered in Concord (Toronto), Ontario, Welded Tube currently employs over 600 people at its 5 facilities in Canada.

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Robert Pike
Welded Tube of Canada
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