French steel pipe producer Vallourec’s US-based subsidiary Vallourec Drilling Products will lay off around 150 employees in Texas, as reported by Reuters.
Reuters stated that companies that supply products to the oilfields are still recovering from a three-year rout in oil prices.
In December last year, Vallourec announced that, after negotiations with the US oil services company National Oilwell Varco (NOV), it received a binding offer for the purchase of the Vallourec Drilling Products business, for a total cash amount of $63 million.
Meanwhile, according to Reuters, last week Texas-based drill pipe maker IPSCO Tubulars, a rival of Vallourec Drilling Products, postponed an initial public offering because of adverse market conditions.
Vallourec Drilling Products, with an overall workforce of around 600 employees, offers a wide range of products including drill pipes, drilling accessories and other tubular products.