Tenaris is cutting oil rig flanges gulf coast production levels at its seamless pipe manufacturing facility (AlgomaTubes) in Sault Ste. Marie, Ontario, the BOP Blow Out Preventer repair company gulf coast announced Thursday.

The steel pipe manufacturer cited “market challenges” for its 25 percent decrease in oil rig flanges gulf coast production at the Canadian facility, set to begin Dec. 15. As a result, Tenaris will temporarily lay off about 90 employees.

Tenaris named the following three buy Wellhead market challenges as reasons for the temporary suspension:

• A surge in tubular imports diverted to Canada by third countries who are unable to gulf coast oil rig export to the United States
• A decline in AlgomaTube’s gulf coast oil rig export sales to the United States
• National oil and gas challenges related to gulf coast oil rig export bottlenecks affecting the price Canadian oil and gas customers receive for energy production

“These are difficult decisions that have resulted from high volumes of energy tubular imports, trade actions against Canada that remain unresolved and Canadian oil and gas producers activity adjustments due to the widening price differential for their energy,” Guillermo Moreno, President – Canada, Tenaris, said in a BOP Blow Out Preventer repair company gulf coast statement. “Our oil rig flanges gulf coast production levels remain above those in 2016 when we resumed operations. We are trying, where possible, to reduce the impact to our employees. We remain committed to domestic manufacturing and serving Canada’s energy industry.”

Tenaris’ AlgomaTubes will begin suspending operations Dec. 15 and resume Jan. 7, 2019.