Sumitomo Metals Succeeds in Seamless Steel Tube Production in Brazil

Sumitomo Metal Industries announced on Friday Vallourec & Sumitomo Tubos do Brazil, a joint company between Sumitomo Metals and Vallourec (VSB), succeeded in the first production of seamless steel tube on December 11th and started the test working.

VSB constructed a steel plant in Minas Gerais province of Brazil. The plant has 2 blast furnaces, steel making plant, and seamless pipe line with 1,500 employees. VSB’s production capacity is 1 million tonnes per year for crude steel and 600,000 tonnes for seamless steel tube. Sumitomo Metals and Vallourec sell seamless steel tube at each 300,000 tonnes.

VSB will start operation of blast furnaces which uses charcoal as reducing agent for April-June 2011. The blast furnaces can reduce CO2 emission compared with coal based blast furnaces. VSB will acquire certification of API for oil tube or Oil Major, and aims to enter full production in the first half of 2012.