Sumitomo Metals Establishes Seamless Pipe Sales Subsidiary in Brazil

Sumitomo Metal Industries announced on Wednesday the firm establishes a seamless steel pipe sales subsidiary in Brazil. Seamless steel pipes are manufactured at an integrated works in Brazil jointly operated by Sumitomo Metals and Vallourec of France. Sumitomo Metals holds 100% shares in the sales subsidiary and conducts sales activities efficiently in the Americas.

Vallourec & Sumitomo Tubos do Brazil (VSB), a joint venture between Vallourec and Sumitomo Metals in Brazil, will supply seamless steel pipe at 300,000 tonnes per year to Sumitomo Metals. Sumitomo Metals will sell the products under their brand name. The firm decided to establish a 100% subsidiary for efficient sales activities.

The sales company will be established in Rio de Janeiro in November with about 15 staffs for quality assurance and delivery control. The new company will hold shares in VSB to engage in VSB’s investment control and management. The capital fund will be approximately 40 billion yen including VSB shares.