Vallourec strengthens local presence in Saudi Arabia

France-based tubular solutions manufacturer Vallourec has reached an agreement to acquire Saudi Seamless Pipes Factory Co. Ltd (Zamil Pipes), the first processing company of seamless OCTG1 in Saudi Arabia.
Located in Dammam, Zamil Pipes is close to Vallourec's new VAM threading plant, which is currently under construction and due to be commissioned in second half of 2011. In complement to this project, the acquisition of Zamil Pipes will provide Vallourec with ready-to-run heat treatment capacity and threading facilities of up to 100 kt of pipe per year. With these two operations, Vallourec will reinforce its local presence in the Kingdom, through additional finishing capacities and reduced lead-times to serve the premium OCTG market in Saudi Arabia.
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. The combination of Vallourec's expertise in VAM premium OCTG technology and Zamil Pipes processing facilities will strengthen the local offer to serve Saudi Aramco and other customers in the Middle East."M??czy?ni