Worthington Acquires Bakken Tank Manufacturer

By The Bakken magazine staff | May 16, 2014

Worthington Industries Inc. wanted to expand its presence from the Utica and Marcellus shale plays. The company already has tank manufacturing facilities in Ohio and Kansas, and now through the acquisition of Dickinson, N.D.-based tank manufacturing division of Steffes Corp., Worthington will have access to the Bakken. According to Dave Cline, director of energy sales for Worthington, the acquisition was made for many reasons. “We are acquiring the people and culture of Steffes,” Cline said, “that is almost as important as the business.” Worthington has acquired other energy related operations since 2012, and the company’s entry into the Bakken was a natural fit, Cline said. The Steffes facility currently employs 35 and builds 100- to 500-barrel capacity steel tanks used for oil and saltwater storage.

Worthington will operate the tank manufacturing facility but will continue to work with Steffes. The company intends to expand the facility and to look for new opportunities, Cline said. The Steffes name, and location in the Bakken, gave Worthington a northern footprint in a place that is set for long-term growth, he added.

In 2013, the tank manufacturing business generated $25 million in revenue. The terms of the acquisition were not disclosed. The division was started in 2007. The acquisition of the tank division will now give Worthington service offerings that include fiberglass storage tanks, gas separators, gas production units and wellhead equipment. “We are committed to North Dakota in many ways,” Cline said. Initially, the North Dakota facility will mainly focus on providing oil storage tanks. As for the purchase of the Steffes tank manufacturing division, Cline said the company didn’t want to just build a building. The company also understood the importance of human capital.