On September 29, Japanese steelmaker Sumitomo Metal Industries, Ltd. (Sumitomo Metals) announced that it has decided to establish a sales subsidiary for seamless pipe that will be manufactured in its integrated steel works in Brazil, with North and South Americas as sales territories. The name of the company is yet to be decided.
Within its partnership with French seamless steel tube manufacturer Vallourec Group, Sumitomo Metals has established Vallourec & Sumitomo Tubos do Brasil Ltda (VSB), a joint venture to manufacture seamless pipe in an integrated steel works in Brazil.
VSB plans to supply 300,000 metric tons of seamless pipe a year to Sumitomo Metals and Sumitomo Metals will sell these products under its brand name. Thus, the company has decided to establish a local subsidiary with a capital of JPY 40 billion ($378 million) in Rio de Janeiro, Brazil in order to conduct sales activities efficiently in the Americas.