Sumitomo Metal and Vallourec invest in Brazil & China

Monday, 02 April 2007 11:47:14 (GMT+3)   |  
       

Japanese group Sumitomo Metals and French steel tube maker Vallourec have agreed to set up a joint venture to make high grade seamless pipes in the Brazilian state of Minas Gerais for about $1.6 billion. 

The joint venture plans to start operations in the middle of 2010 and will have an annual production capacity of 600,000 mt of seamless pipes.  The project will include a steel mill with annual production capacity of 1.0 million tons of round billets, of which 700,000 tons will be used for the pipe plant.  Construction is set to start in the fourth quarter of 2007. 

In a separate statement, Sumitomo Metal said it and Sumitomo Corp. will buy a total 49 percent stake in Vallourec's seamless pipe processing unit in China.  The mill will start operations in mid-2007 with an annual production capacity of 50,000 tons of steel tubing and casing products.  Sumitomo Corp. plans to acquire a 15 percent stake with Sumitomo Metal taking a 34 percent stake, leaving the remaining 51 percent with Vallourec for the China unit. 


Similar articles

US structural pipe and tube exports down 41.7 percent in January

22 Mar | Steel News

US structural pipe and tube imports up 13.6 percent in January

19 Mar | Steel News

US rig count increases while Canadian count drops week-on-week

23 Feb | Steel News

US structural pipe and tube exports down 22.3 percent in December

23 Feb | Steel News

US structural pipe and tube imports up 9.9 percent in December

16 Feb | Steel News

US OCTG imports up 51.8 percent in December

07 Feb | Steel News

US rig count drops while Canadian count rises week-on-week

02 Feb | Steel News

US and Canadian rig counts increase week-on-week

26 Jan | Steel News

US OCTG exports down 8.1 percent in November

26 Jan | Steel News

US structural pipe and tube imports down 7.5 percent in November

23 Jan | Steel News