Alamo Tube Co. plans to build a $62.5 million pipe mill and finishing facility south of San Antonio to serve the Eagle Ford Shale and Permian Basin oil and gas fields.
The privately held San Antonio company says it will employ more than 200 workers.
The mill will be at Alamo Junction Rail Park, a new 400-acre development in Elmendorf. The Union Pacific and Burlington Northern Santa Fe railroads serve Alamo Junction.
Abbey Fives Bronx will supply the high-speed pipe rolling mill with U.S.-produced tube. Alamo Tube said in announcing the project Tuesday night that its mill will produce 250,000 tons of oil field tubing yearly.
Alamo Junction Rail Park, part of the rail boom fueled by the Eagle Ford, is geared for warehousing operations, manufacturing and oil field services such as crude oil storage and shipment, or the storage and shipment of sand used in hydraulic fracturing operations.
The rail park, which National Property Holdings and Rail Logix are developing is one of the latest rail sites in South Texas to expand — or appear from scratch in a swath of cleared brush and mesquite. Train cars are moving such oil field staples as sand for hydraulic fracturing, gravel for well pads and roads, and the produced crude oil itself.
Among the South Texas rail yards adding track to accommodate shale business are Hondo Railway LLC, Port San Antonio’s East Kelly Railport, Gardendale Railroad Inc. in La Salle County and the Texas, Gonzales & Northern Railway Co. near Harwood in northern Gonzales County.
Another new rail site in southern Bexar County, the 300-acre Southton Rail Yard near Interstate 37 and Loop 410, opened in January. Its anchor tenant is Santrol, part of Ohio-based Fairmount Minerals.