June 29, 2005
Lone Star Technologies, Inc. has announced that its largest subsidiary, Lone Star Steel Co., and Tubos del Caribe, S.A. (Tubocaribe), a Colombian manufacturer of oil country tubular goods (OCTG) and line pipe, have terminated their strategic alliance, following Tubocaribe's ownership change. The exclusive agreement was due to expire in October 2006.
Lone Star noted that there will be no disruption in the supply of tubular products. Pursuant to the termination agreement, all open orders between Lone Star and Tubocaribe will remain in effect, resulting in all previously expected shipments of OCTG to Lone Star being made in the third quarter of 2005. In addition, Tubocaribe will deliver to Lone Star, without charge, late this year an agreed quantity of OCTG. While the final deliveries of OCTG from Tubocaribe will be at a reduced level in the fourth quarter, production from Lone Star and Lone Star's alliance agreements with other manufacturers will continue to service the full range of customer requirements.