Vallourec agreed a deal to acquire Saudi Seamless Pipes Factory Company Limited (Zamil Pipes), the first processing company of seamless OCTG(1) in Saudi Arabia.
The transaction amounts to US$135 million but is subject to regulatory approvals and is expected to be finalised in Q2 2011.
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.
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."
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.
