TPT July 2007

Industry News

Vallourec and Sumitomo strengthen partnership with projects in China and Brazil

Global expansion and product development for RathGibson RathGibson, USA, a leader in stainless steel, nickel and titanium precision engineered tube and pipe, has announced considerable global expansion and product success. “We are constantly seeking ways to maintain the highest quality in our products as well as our services,” said Mr Harley Kaplan, president and CEO of RathGibson. Over the past two years the company has supplied markets including the Middle East, Africa, China and southeast Asia with precision welded tubing, delivered according to the most comprehensive testing and quality control procedures available. These products have been provided for applications including high purity, nickel alloy heat exchangers, subsea umbilical, titanium desalination, and down- hole pressure tubing. The inspection and testing performed by RathGibson leads to products that are claimed to exceed established industry standards and specifications. The test

Vallourec, France, and Sumitomo, Japan, have announced a planned collaboration involving China-based VAM Changzhou. Created by Vallourec in September 2006, VAM Changzhou is specialised in the threading of seamless steel tubing and casing for oil and gas OCTG products. Sumitomo Metals Industries Ltd and Sumitomo Corp intend to purchase a joint 49 per cent stake in the overseas holding company controlling VAM Changzhou. Expected to deliver its first connections by mid-2007, VAM Changzhou will have a predicted threading capacity of 50,000t per year. These connections will be sold to the Chinese market. This move follows on from Vallourec and Sumitomo’s recent announcement of a joint venture in Brazil. The two companies will establish a new state-of-the-art integrated steel works and premium seamless pipe mill in the State of Minas Gerais. With production expected to begin in 2010, this new plant will have an annual seamless pipe production capacity of 600,000t, with equal

division of production capacity between the two companies. The new Brazilian tube mill will be primarily dedicated to the production of seamless OCTG products. It will produce tubes with diameters ranging from 168.3mm to 406.4mm and will include heat treatment capacity as well as threading lines. Equating to a total joint investment of approximately US$1.6bn, Vallourec will hold a majority interest in the joint venture. Vallourec currently operates two rolling mills in Brazil, which are fully integrated with two blast furnaces. The joint venture is expected to increase Vallourec’s global seamless pipe capacity by approximately 10 per cent.

V & M – France Fax : +33 1 49 09 39 90 Website : www.vallourec.com

Sumitomo Metals – Japan Fax : +81 6 6223 0305 Website : www.sumitomometals.co.jp

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J uly /A ugust 2007