VALLOUREC : VALLOUREC : Vallourec dedicates its new U.S. plant in Youngstown,
Ohio, to meet North American oil and gas market's growing needs
Vallourec dedicates its new U.S. plant in Youngstown, Ohio, to meet North
American oil and gas market's growing needs
Youngstown, Ohio, and Boulogne-Billancourt, June 12, 2013 - Vallourec, world
leader in premium tubular solutions, today announces the dedication of its new
pipe mill to serve, in particular, the North American market for production of
shale hydrocarbons. Located in Youngstown (Ohio, United States), within the
existing Vallourec Star facility, the new unit further expands the range of
Vallourec products manufactured in North America. With an initial annual
production capacity of 350,000 tons of small diameter seamless tubes, the new
mill represents an investment of $ 1.05 billion and employs 350 people.
The mill delivered its first pipe in December 2012 and will ramp-up throughout
Speaking at the new facility's dedication, Philippe Crouzet, Chairman of
Vallourec's Management Board, said: "Implementation of this new state-of-art
mill enables us to strengthen our premium products leadership in North
America. I would like to recognize our local teams who have managed to
complete a major project in an extremely short time frame. I also want to
express our appreciation to the federal, state and municipal authorities for
their unfailing support. With this new pipe mill, we are able to participate
even more actively in the development of shale hydrocarbons in North America,
with an offer that responds to all of our customers' needs."
Exploration and production of unconventional hydrocarbons has revolutionized
the North American market for oil and gas, leading to a significant increase
in accessible reserves in the region. The large number of wells and the use of
horizontal drilling techniques required in shale hydrocarbon production have
increased demand for small diameter tubes and premium connections.
With the new mill coming on stream, Vallourec's Youngstown site now offers the
full range of products and services necessary for all hydrocarbon production,
and in particular the shale developments. The integrated site includes a steel
mill, a mill specializing in medium diameter tubes (from 5 to 10 ^3/4 inches)
and the new mill, which specializes in the manufacture of small diameter tubes
(2 ^3/8 to 7inches).
Vallourec in North America: the #1 domestic producer of premium tubular
With over 2,900 people in 22 manufacturing facilities and service operations
in the US, Canada and Mexico, Vallourec in North America primarily serves the
local Oil & Gas market. Key products include Oil Country Tubular Goods (OCTG),
Line Pipe, Drill Pipe and premium threading services of VAM^® premium joints.
Most other market segments are served by Vallourec's specialized entities in
Europe and Brazil.
In 2012, the North American market generated €1.5 billion in revenues,
representing 29% of Vallourec's total sales.
With the most competitive integrated supply of tubular solutions and finishing
shops ideally situated close to its customers, Vallourec is strengthening its
position as leading premium tubular solutions supplier in North America.
Vallourec is a world leader in premium tubular solutions primarily serving the
energy markets, as well as other industrial applications.
With over 23,000 employees, integrated manufacturing facilities, advanced R&D
and a presence in more than 20 countries, Vallourec offers its customers
innovative global solutions to meet the energy challenges of the 21st century.
Listed on the NYSE Euronext in Paris (ISIN code: FR0000120354, Ticker VK) and
eligible for the Deferred Settlement System (SRD), Vallourec is included in
the following indices: MSCI World Index, Euronext 100 and CAC 40.
In the United States, Vallourec has established a sponsored Level 1 American
Depositary Receipt (ADR) program (ISIN code: US92023R2094, Ticker: VLOWY).
Parity between ADR and a Vallourec ordinary share has been set at 5:1.
For further information, please contact
Press relations Investor relations
Caroline Philips Etienne Bertrand
Tel: +33 (0)1 41 03 77 50 Tel: +33 (0)1 49 09 35 58
Vallourec Star Youngstown aerial view (JPG)
130612 Vallourec Press release Dedication FQM Youngstown (PDF)
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Source: VALLOUREC via Thomson Reuters ONE
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