On February 26, Japanese steelmaker Sumitomo Metal Industries, Ltd (Sumitomo Metals) and French seamless steel tube producer Vallourec S.A. announced their agreement on arrangements intended to strengthen their respective positions in the premium joint business in the US.
Specifically, they will merge two premium joint companies, VAM USA Company (VAM USA) and V&M Atlas Bradford LLC (Atlas Bradford), to establish a new premium joint threading joint venture owned by Vallourec, Sumitomo Metals, and Sumitomo Corporation. Their stakes will be respectively, 51 percent, 31 percent, and 15 percent. The name of the merged entity is VAM USA LLC. By strengthening the premium joint business, Sumitomo Metals aims to make a further leap forward in the pipe and tube business.
Sumitomo Metals and Vallourec have been working together for more than 30 years on the VAM® premium joint. The two companies are currently constructing an integrated seamless pipe steelworks in Brazil, as a joint venture. They also cooperate in managing premium joint threading companies, not only in the US, but in China, Indonesia, and Vietnam as well.