Business Report: Oilfield Supplier Tejas Tubular Sets New Plant in Norfolk, NE
By Shana Daley
From the March/April 2014 issue
Gov. Dave Heineman recently welcomed the expansion of Tejas Tubular Products Inc., a Texas-based oil country tubular goods (OCTG) manufacturer, to the greater Norfolk, NE area. Joining him for the announcement were Max Tejeda owner of Tejas Tubular, Norfolk Mayor Sue Fuchtman, and Dirk Petersen, general manager of the Nucor Corp., an American steel manufacturer.
Tejas will build the 350,000-square-foot Madison county facility to supply more than 150,000 tons of steel products that include casing, drill pipe and line pipe for oil and gas production. This expansion will create more than 200 new jobs in the Norfolk area. The new plant is expected to be operational by late 2015.
“Attracting a substantial company, such as Tejas Tubular is a testament to our state’s continual goal to offer the most comprehensive incentives found anywhere in the U.S.,” Gov. Heineman said. “Similarly, the significant financial investments and job creation that Tejas is making will positively impact the entire northeast Nebraska economy for years to come.”
“We’re impressed with Nebraska’s fiscally-conservative approach to doing business,” said Tejeda. “The City of Norfolk was instrumental in convincing us to locate here. I can readily see the quality and dedication of the local workforce, and am looking forward to hiring hard-working Nebraskans to manufacture our line of quality products.”
Peterson confirmed that Nucor will supply steel for Tejas Tubular’s OCTG products. “This strategic partnership, as well as its location to markets in the U.S. mid-continent region is a win-win situation for both companies. This facility shows the commitment of the Norfolk community to business and to creating American jobs and supporting American energy independence,” Peterson said.
Tejas Tubular is a primary supplier to oil and gas producers throughout the U.S., and is a particularly important supplier to the Rocky Mountain region. The company currently has manufacturing facilities in Houston, TX, Stephenville, TX and New Carlisle, IN. It is one of the leading manufacturers and suppliers of oil country tubular goods for the petroleum industry and offers a complete range of OCTG products serving conventional, offshore and unconventional production projects.
Tejas’ product lines include casing, tubing, couplings and tubular accessories as well as drilling products including HDD drill pipe, oilfield drill pipe, drill collars and drill string accessories. Tejas Tubular was founded on a 15-acre site in Houston in January 1990 by Max Tejeda.
In a related announcement, Black Hills Energy will build a natural gas line from near Bancroft west to Norfolk to provide the natural gas supply needed by Tejas Tubular.
Courtney Klein, economic development director for the City of Norfolk, told the Norfolk Daily News that Tejas Tubular plans to apply for Tier 6 incentives of the Nebraska Advantage program. Tier 6 requires a minimum investment of $100 million. It also requires that at least 50 of the jobs to be created pay at least twice the average wage in Madison County or 150 percent of the statewide average wage, she said.
DED OFFERS NEW SUPPORT FOR ENTREPRENEURS
The Nebraska Department of Economic Development (DED) is now accepting referrals from Entrepreneur Support Organizations (ESOs) for two new programs—an Economic Gardening® program launched in conjunction with the Edward Lowe Foundation and the National Center for Economic Gardening (NCEG), and the Ice House Entrepreneurship program.
The Economic Gardening® program offers a new way of thinking about supporting second-stage growth companies, and lets business owners know how valuable they are to their local economies. Economic Gardening® addresses strategic growth challenges, including developing new markets, refining business models, and gaining access to competitive intelligence.
DED will ultimately select and fund five Nebraska companies to receive Economic Gardening services in the NCEG program.
ESOs (chambers of commerce, universities, small business development center, technology councils, and economic development agencies) may refer second-stage companies that meet the following eligibility criteria:
- For-profit, privately-held companies headquartered in Nebraska for at least the past two years.
- Generate annual revenue between $750,000 and $50 million.
- Employ between 6 and 99 full-time employees.
- Demonstrate growth in employment and/or revenue during any two of the past five years.
- In addition to local markets, provides products or services to regional, national and international markets.
- Are directly referred by an ESO.
The Ice House Entrepreneurship program is designed to inspire and engage participants in the fundamental aspects of the entrepreneurial mindset and the limitless opportunities such a mindset can offer. Learners are immersed in entrepreneurial experiences that not only enable them to develop this specific skill set, but specific way of thinking.
Sponsored by the Ewing Marion Kauffman Foundation and created by the Entrepreneurial Learning Initiative, the Ice House Entrepreneurship program has garnered international attention from academic and economic development organizations. Participants may range in experience from newly-minted young adult entrepreneurs with little or no experience to long-time workforce professionals. All should have a willingness and interest in exploring and learning about the entrepreneurial mindset. Students must be referred by an ESO.