Webco Industries Inc., a Sand Springs-based maker of carbon and stainless steel tubing products, has announced plans to construct a new plant north of Kellyville in Creek County.

Company spokesman Mike Howard said the plant should employ 85 people over the next four years and may grow larger - possibly to 150 - based on demand.

"It may take many years to build up to that," he said.

Howard said the new stainless steel tubing facility is still in the planning stages, and the company has not determined a final square footage or cost.

Even so, Webco is in the process of buying 40 acres in Creek County for the facility. Howard said the location was ideal, especially after the recent closure of lock maker Kwikset in nearby Bristow eliminated 1,100 jobs.

"We evaluated a large number of possible properties, and it best fit our criteria, which included available work force."

Webco needed additional space because the company had reached capacity at its other stainless steel tubing plant at its 200,000-square-foot facility in Mannford that employs 200 people.

"We've got nowhere else to grow," said Howard.

The company hopes to begin construction on the facility within the next six months.

Webco operates a carbon steel tubing plant in Sand Springs that employs 300, as well as a carbon steel tubing plant in Oil City, Pa., that employs 160. IT also has operations in Texas, Illinois and Michigan.

Altogether, the company serves more than 1,000 customers in North America.

Late Wednesday, Webco reported results for its fiscal 2005 fourth quarter and year ended July 31.

For its fiscal 2005 fourth quarter, the company had net income of $2.27 million, or $2.99 per diluted share, compared with $.07 million, or $5.66 per diluted share, for the same quarter of 2004.

Net sales for the fourth quarter of fiscal 2005 were $71.5 million, a 16.4 percent increase over the $61.4 million in last year's fourth quarter.

Net income for fiscal 2005 was $18.58 million, or $24.74 per diluted share, compared with $7.22 million, or $10.08 per diluted share, for fiscal 2004.

Net sales for the current year totaled $291.8 million, a 37.3 percent increase over the $212.5 million for last year.

"Our business has continued to do well, although it is very difficult to predict the new impact of all the factors affecting our markets, "F. William Weber, Webco's chairman and CEO, said in a press release.

Weber said the company's Texas facility has experienced some down time because of Hurricane Rita, although the plant is thought to have not sustained substantial damage.

"We must await the return of utility services and be allowed access to the area in order to assess the damage and resume operations," he said.

"It is likely that some of our Gulf Coast customers have been adversely affected as well, although it is too early to tell which ones and to what extent."

Earlier this year, Webco had its common stock de listed from the American Stock Exchange.

In July, shareholders approved a reverse split and then a forward split of the company's common stock, having the net effect of a one-for-10 reverse split.

The common stock is now quoted on the Pink Sheets under the ticker WEBC.