Infinity Tubes Inc.

New vs. Established Mills: What Buyers Overlook

That attractive quote from a new mill might come with hidden risks. Here's what experienced buyers evaluate beyond price.

Commissioning Delays
New mills often face 6-18 month delays getting to full production capacity

Impact: Your orders may be delayed or cancelled during critical project phases

Quality Inconsistency
Process optimization takes time - expect higher defect rates initially

Impact: Increased inspection costs and potential rework on your end

Limited Surge Capacity
New operations can't handle volume spikes that established mills absorb

Impact: No backup when you need expedited or larger orders

Risk Assessment by Factor

New/Startup Mills
Recently commissioned facilities
Established Mills
3+ years of operation
Commissioning Risk
High Risk

6-18 month startup delays common

Low Risk

Proven processes and systems

Regulatory Approvals
Medium Risk

EASR/ECA permits may be pending

Low Risk

All permits in place and current

Power Infrastructure
High Risk

Electrical upgrades often underestimated

Low Risk

Adequate capacity and backup systems

Quality Systems
Medium Risk

QA processes still being refined

Low Risk

Mature QA with audit history

Supply Chain
High Risk

Limited vendor relationships

Low Risk

Established supplier network

Technical Support
Medium Risk

Growing engineering team

Low Risk

Experienced metallurgists on staff

Why Reliability Matters
  • Established mills have proven their processes through multiple economic cycles
  • Mature quality systems reduce your inspection and rework costs
  • Strong supplier networks ensure consistent raw material availability
  • Experienced teams can troubleshoot issues quickly
When New Mills Make Sense
  • Non-critical applications where delivery flexibility exists
  • Long-term contracts with penalty clauses for delays
  • Backup suppliers already qualified and ready
  • Significant cost savings (>15%) justify the additional risk

The Bottom Line

New mills can offer competitive pricing, but established suppliers provide the reliability and risk mitigation that keeps your production running smoothly. The choice depends on your risk tolerance and the criticality of your application.

Need Help Evaluating Mill Options?

Our team can help you assess the risk-reward tradeoffs for your specific application.

Speak with Tubular's Ops TeamDownload Checklist