-(1)-Reinhausen-(1).jpg?lang=en-US&ext=.jpg)
Sumitomo Metals, Vallourec Form Premium Joint Threading Venture
02/27/2009 - Sumitomo Metal Industries and Vallourec SA agree to establish a new U.S.-based premium joint threading joint venture by merging their two premium joint companies VAM USA and V&M Atlas Bradford LLC.
Sumitomo Metal Industries, Ltd. and Vallourec SA have agreed to establish a new U.S.-based premium joint threading joint venture by merging their two premium joint companies VAM USA Co. and V&M Atlas Bradford LLC.
The companies said the new joint venture—VAM USA LLC—will help to strengthen their respective positions in the U.S. premium joint business. And by strengthening the premium joint business, Sumitomo Metals aims to move forward in the pipe and tube business.
The new joint venture will be jointly owned by Vallourec (51%), Sumitomo Metals (34%), and Sumitomo Corp. (15%). Headquartered in Houston, Texas, the venture is to employ 500 employees for the threading and sales of VAM and Atlas Bradford® premium joints.
Sumitomo Metals and Vallourec have worked together for more than 30 years on the world-renowned VAM® premium joint. They are currently constructing an integrated seamless pipe steelworks in Brazil, as a joint venture. They also cooperate in managing premium joint threading companies in the U.S. as well as in China, Indonesia, and Vietnam.
To demonstrate the further strengthening of their cooperative relationship in technological development and production, Sumitomo Metals and Vallourec have also agreed to purchase shares of common stock of the other party, worth $120 million, from their respective markets by December 31, 2009.
Headquartered in France, Vallourec S.A. produces seamless pipe in France, Germany, Brazil, and U.S., and reported sales of 6,140 million Euros in 2007.
