France-based pipe manufacturer Vallourec has reduced the value of its Brazilian assets, as a result of low oil prices, local media reported.
According to reports, the value of Vallourec Sumitomo Tubos do Brasil assets, a joint venture between Vallourec and Japanese-based Nippon Steel & Sumitomo was reduced by €500 and €600 million (US$564-$678 million).
“We believe the group faces a dip and potentially longstanding change in its business environment,” Philippe Crouzet, president at Vallourec council said in a conference with journalists.
Vallourec Sumitomo’s assets include a metallurgical complex in the city of Jeceaba, in the state of Minas Gerais. The complex has a 1 million mt/year crude steel capacity. It can also produce 600,000 mt of seamless steel tubes.