Sumitomo Metals, Vallourec Sign Pact for Brazil Seamless Pipe JV

Sumitomo Metal Industries signed joint venture agreement with Vallourec Group of France for seamless pipe plant in Brazil. They launched Vallourec & Sumitomo Tubos do Brazil on Thursday in Jeceaba, Minas Gerais of Brazil. The new plant starts operation in July 2010 to make annual 600,000 tonnes of seamless pipe with 168.3-406.4 millimeters diameter. They build integrated steel plant and seamless pipe line with 1 million tonnes of raw steel output capacity for around 200 billion yen. The plant with charcoal based 2 blast furnaces with 400 cubic meters of capacity makes around 700,000 tonnes of seamless pipe and ships 300,000 tonnes of steel for Vallourec. Vallourec controls 56% of the joint venture with 44% share by Sumitomo Metals and Sumitomo Corporation. Sumitomo Metals and Vallourec sell 300,000 tonnes of products each. Sumitomo Metals tries to follow the growing demand for high valued seamless pipe from oil majors through the global supply network with 1.6 million tonnes of annual output capacity including products from the new plant.