Vallourec to acquire Saudi-based Zamil Pipes

Boulogne-Billancourt, France-based tubular producer Vallourec announced on May 23 that it is to acquire Zamil Pipes, a seamless pipe processing factory located in Dammam, Saudi Arabia. The acquisition of Zamil Pipes, which is expected to be finalized in Q2 this year, will cost $135 million.
 
In addition, Vallourec is currently constructing a new VAM threading plant close to Zamil Pipes. These two operations will reinforce the company's local presence in the Kingdom of Saudi Arabia through additional finishing capacities and reduced lead times to serve the premium oil country tubular goods (OCTG) market in Saudi Arabia. Vallourec expects up to 1 million mt of steel pipe per year from the operations.
 
Philippe Crouzet, chairman of Vallourec's management board, stated, "With local heat treatment and premium threading facilities, Vallourec and Zamil Pipes will enjoy an unmatched competitive position." Khalid Al Zamil, chairman of Zamil Pipes and executive director of Zamil Group, said, "We are proud to contribute to the local establishment of a world class premium OCTG supplier for the oil and gas industry in Saudi Arabia and wish Vallourec the best of success."