TEX HEADS

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NASPD Spotlights Tex-Tube Company Raymond Davila rdavila@tex-tube.com Andrew Grebe agrebe@tex-tube.com Grupo 30 September, 2005 1 R&D - “Cloning of Sales Personnel” 2 Outline • Company starts up in 1945 • Line and Standard Pipe • Mills in Houston • Size Range and Capacity • Industries Served • Strategic Partners • Quality Policy • API Q1, ISO 9001, ISO 14001 • New Project 3 In the year 1945….. Company began business (founder Charlie Carter) supplying purchased 3”OD x .065” wall “shot hole casing” and dynamite to the seismograph crews exploring for oil on the Gulf Coast. These 10-foot long pieces of casing were joined with a Tex-Tube designed integral joint with a rolled thread. 4 Line and Standard Pipe Tex-Tube entered the line and standard pipe distribution market in 1949. In 1950, we built our first welded tube mill and pioneered the use of light-wall ERW pipe. This product has remained the predominant business of Tex-Tube to this day. In 1957, Tex-Tube obtained licenses to produce pipe and casing to API specifications. 5 Two Mills in Houston Tex-Tube Company produces electric resistance welded (ERW) steel line pipe to API Specification 5L, CSA Z245.1 and oil country casing and tubing to API Specification 5CT. Steel pipe is also produced in accordance with ASTM A53B, A795 and A500 specifications. Processing includes; coating (mill lacquer) and roll grooving. 6 Size Range and Capacity Pipe sizes range between 2-3/8 inch through 8-5/8 inch outside diameter and wall sizes range between .109 inch through .322 inch. Manufacturing and distribution capacity exceeds 140,000 tons annually. 7 Major Industries Served Tex-Tube supplies the North American line pipe, casing and standard pipe markets with products for use in a wide range of applications including: the oil and gas industry, construction, plumbing, fire protection, elliptical bridge rail, and industrial. 8 Strategic Partners An agreement with Lone Star Steel allows all API products produced by Tex-Tube to be marketed by Lone Star Steel throughout the United State and Canada. In turn, Tex-Tube has exclusive rights to purchase ASTM products manufactured by Lone Star Steel. 9 Quality Policy Tex-Tube Company is committed to a Quality Policy of customer satisfaction, quality driven objectives, continual improvement, and environmental responsibility. The quality management system complies with API Q1 and ISO 9001:2000. 10 API Q1 Quality Management System 11 ISO 9001:2000 Quality Management System 12 ISO 14001:2000 Environmental Management System 13 NEW PROJECT Inline Finishing for #1 Mill • To stay in business by replacing antiquated equipment with new technology and modern process-flow. • To retain market share of API and ASTM products. • To be more competitive with semi-automated pipe finishing and material handling. 14 PROJECT DETAILS • New outside coil storage location. • Racks and high speed conveyers. • Bevellers (with material handling system). • Hydrostatic tester (4 heads with flush, pit and material handling system). • After hydrostatic ultrasonic testing (with material handling system). • Induction heating, coater (mill lacquer), transformers and switch gear. • Groover (with material handling system). 15 7 Phases of Inline Finishing Project Groove Induction Heating & Coating After Hydro U.T. 4 heads Hydro Tester Bevelers Racks & Conveyers Coil Storage Yard 16 NASPD Spotlights Tex-Tube Company Raymond Davila rdavila@tex-tube.com Andrew Grebe agrebe@tex-tube.com Grupo 30 September, 2005 17

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