VALLOUREC: Vallourec to double its VAM® connection testing capacity in Aulnoye-Aymeries, France

    VALLOUREC: Vallourec to double its VAM® connection testing capacity in
                           Aulnoye-Aymeries, France

Vallourec to double its VAM^® connection testing capacity in Aulnoye-Aymeries,
France

           (Scroll down at the end of the press release for photos)

                                      

Boulogne-Billancourt, January 23,  2014 - Vallourec,  world leader in  premium 
tubular solutions, today announced its decision to expand its VAM^® Connection
Technology Center in Aulnoye-Aymeries  (North of France),  in order to  double 
its testing capacity.  The center  currently employs  160 people  who work  on 
developing ever more innovative products for  the oil and gas industry  (VAM^® 
tubes  and  connections)  to  meet  the  increasing  complexity  of   drilling 
operations. Amounting  to  approximately  €50 million,  this  investment  will 
result in the creation of 95 jobs by 2016.

Demand from oil  and gas customers  for full-scale testing  is growing as  the 
standards  and  the  reliability  requirements  are  getting  more  and   more 
stringent. Thanks to the  state-of-the-art tools that  will equip the  testing 
facility, the  sealing  qualities  of  VAM^® tubes  and  connections  will  be 
verified under  the  most  extreme  conditions.  Testing  includes  subjecting 
connections to make-up and break-out operations, simulation of combined  loads 
(tension or compression), deformation and resistance to high temperatures  and 
fatigue. This testing capacity  complements the center's development  activity 
which covers the  design of premium-threaded  connections, the development  of 
proprietary steel grades and the industrialization of threading lines.

Didier Hornet, Managing Director of Vallourec's Oil and Gas activities,  said: 
"The ability to  conduct full  scale testing  on VAM^®  tubes and  connections 
under the most extreme conditions responds to the growing demand from oil  and 
gas companies and represents a real competitive advantage for Vallourec. After
doubling our testing capacity in Houston in 2012, this new investment reflects
our commitment to  pushing the  frontiers of technological  innovation in  the 
field of  VAM^® connections  still further  and serving  our customers  better 
through increased research and development resources."

The project to expand the testing center in Aulnoye-Aymeries will occur in two
stages. Preparation of receiving areas for the new test equipment in  existing 
buildings at the Aulnoye-Aymeries site will begin in the first quarter of 2014
and the first additional testing capacities should be operational by 2015. All
VAM^® development andtesting capabilities will then be transferred in 2017  to 
a new building  to be constructed  near the existing  center. The new  9,000m² 
testing facility  will  be  divided into  four  zones:  machining  (mechanical 
metalworking), surface treatment, sample preparation and testing.

This VAM^®  Connection Technology  Center will  continue to  benefit from  the 
immediate vicinity of Vallourec Research Center France, in particular relating
to metallurgy  and to  corrosion  studies. In  addition  to the  research  and 
development  activities  which  currently  employ  above  300  people,   three 
production units are also located at the Aulnoye-Aymeries site: a pipe mill, a
drill  pipe  and  connections  manufacturing   unit  and  a  threading   unit. 
Altogether, Vallourec employs 1,600 people at the site.

The Aulnoye-Aymeries VAM^® center is one of Vallourec's three VAM^® connection
test centers,  the other  two being  located in  the United  States  (Houston, 
Texas) and in Indonesia (Batam). Vallourec plans the construction of a  fourth 
VAM^® connection testing center in Brazil by 2015.

About Vallourec

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.

VAM^® is a registered trademark

www.vallourec.com

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
caroline.philips@vallourec.com  etienne.bertrand@vallourec.com

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140123 Vallourec Press release Extension RD Aulnoye VA (PDF)
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Source: VALLOUREC via Globenewswire
HUG#1756737
 
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