Vallourec merges its two main Brazilian companies

BOULOGNE-BILLANCOURT, France -- Vallourec has finalized the merger of Vallourec Tubos do Brasil (VBR) and Vallourec & Sumitomo Tubos do Brasil (VSB).

Vallourec holds a majority stake, of 84.6%, in the new entity, called Vallourec Soluções Tubulares do Brasil; Nippon Steel & Sumitomo Metal Corporation (NSSMC) holds 15%, and Sumitomo Corp. holds the remaining 0.4%.

Following the merger, Vallourec Soluções Tubulares do Brasil will generate significant industrial and administrative synergies, and will fully benefit from the optimal performance reached by VSB’s state-of-the-art PQF mill and premium finishing facilities, making it a highly competitive production hub.

NSSMC will keep its present purchase agreement for 300kt of tubes per year to be manufactured in the Jeceaba plant. The new entity will be fully consolidated in Vallourec’s financial statements as from Oct. 1, 2016, and the interests held by NSSMC and Sumitomo Corp. will be recorded as non-controlling interests.