New V&M Star by early July

New V&M Star by early July

It was announced on May 27, 2002 that one of the major trading houses Sumitomo Corp jointly with Vallourec&Mannesmann Tubes joint venture decided to acquire North Star Tubular Division (NSSTD). Vallourec of France together with Mannesmann of Germany hold the 80% shares of NSSTD and Sumitomo Corp. holds the 20%. As a result of the acquisition which is expected to complete by the end of July NSSTD will become V&M Star. V&M is currently effecting exports to the US and is expecting to raise its sales to the growing energy sector and increase its market share via V&M Star. Officials from Vallourec state that V&M Star production of 80% OCTG and 20% tubes for the petrochemical industry is complementary to their productions. 98% of its products are into the US market and the remaining for Canada. More than half of the sales of V&M do Brasil are for the local market and remaining is sent to Latin America and the USA. The sales of V&M Star are expected to reach € 2.7billion within the second half of the year while the 55% of thegroup sales are predicted to be for the energy sector and balance for outside of the EU.