TPT January 2007

Industry News

OCTG joint venture for Lone Star and Brazil’s GPC

Exhibition for oil, petrochemical and energy TechFluid 2007, a new international fair for technological solutions in mechanical subcontracting, metals and innovative materials for the oil, petrochemical and energy industry, will be held from 10-12 May 2007 in Piacenza, Italy at the PiacenzaExpo exhibition centre. The exhibition is targeted at producers of tube, components (aluminium, special steels, stainless steel, titanium, brass, and copper), ferrous and non-ferrous foundry castings, polymers/composite materials, and prototyping/design companies. TechFluid 2007 will be divided into several areas of interest, including underground drilling and boring, plant engineering for the petrochemical industry, and producers of special vehicles, complete machines, complete plants, mechanical groups and sub-groups.

Lone Star Technologies Inc, USA, has entered into a joint venture with holding company Grupo Peixoto de Castro, Brazil. The agreement involves Lone Star acquiring a 50 per cent ownership stake (worth US$42 million) in Apolo Mecanica e Estruturas Ltda, an oilfield tubular products facility in southeastern Brazil operated by Apolo. The remaining 50 per cent ownership stake will be held by GPC, with profits split equally. The joint venture will be run by its own board of directors initially consisting of six directors (also split equally), while management is expected to consist primarily of current managers of Apolo Tubulars. Apolo Tubulars currently operates a new ERW pipe mill and related finishing facilities capable of producing approximately 150,000t of oilfield tubular products ranging from 2 3 / 8 " to 9 5 / 8 ". Mr Rhys J Best, chairman and CEO of Lone Star said, “Our strategic investment in Apolo Tubulars will give us the opportunity to benefit from the strong growth in demand for

oilfield tubular products that is anticipated to occur in many South American countries. Together, we can offer practical commercial solutions utilising profitable, efficient and safe manufacturing.” Grupo Peixoto de Castro is a Brazilian holding company with principal operating subsidiaries that manufacture and distribute refined petroleum derived products, lubricants, chemicals and petrochemicals, and steel tubular products. Lone Star is a holding company responsible for the manufacture of oilfield casing, tubing, linepipe, and speciality tubing products, including finned tubes. They also supply flat rolled steel and other tubular products and services.

Lone Star Steel – USA Fax : +1 972 770 6409 Website : www.lonestarsteel.com

Techfluid – Italy Fax : +39 030 221 168 Website : www.techfluid.it

Apolo Mecanica e Estruturas LTDA – Brazil Fax : +55 21 2240 0538 Website : www.tubosapolo.com

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J ANUARY /F EBRUARY 2007