French pipe manufacturer Vallourec announced Wednesday that through its subsidiary VAM USA, it will construct a new premium threading facility in Youngstown, Ohio to serve the oil country tubular goods (OCTG) market. In a press release, Vallourec said the decision for the new Youngstown facility was supported by the development of unconventional oil and gas drilling of shale resources, driving increased demand for premium connections.
Vallourec is investing US$57 million in the new VAM plant, which will be located next to the company's existing and soon-to-be commissioned pipe mills operating under another affiliate, V&M Star. It will also complement the VAM USA manufacturing facilities in Houston, Texas.
The first phase of the new production facility will begin ramping up in mid-2012 with the operation of one line, and multiple lines will be operated by the end of 2013.