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Vallourec to Acquire Zamil Pipes
05/26/2011 - Vallourec has reached an agreement to acquire Saudi Seamless Pipes Factory Co. Ltd. “Zamil Pipes,” in Saudi Arabia. The transaction is subject to regulatory approvals and is expected to be finalized in Q2 2011.
Vallourec has reached an agreement to acquire Saudi Seamless Pipes Factory Co. Ltd. “Zamil Pipes,” said to be the first processing company of seamless Oil Country Tubular Goods (OCTG) in Saudi Arabia.
Located in Dammam, Zamil Pipes is close to Vallourec’s new VAM threading plant that is currently under construction and due to be commissioned in the second half of 2011. The acquisition of Zamil Pipes will provide Vallourec with “ready-to-run” heat treatment capacity and threading facilities of up to 100,000 tonnes of pipe per year.
With these two operations, Vallourec expects to reinforce its local presence through additional finishing capacities and reduced lead times to serve the Oil Country Tubular Goods market in Saudi Arabia. The Kingdom, through its national oil company Saudi Aramco, is the world’s largest oil producer and is one of Vallourec’s main customers with growing requirements for premium OCTG.
Philippe Crouzet, Chairman of Vallourec’s Management Board said: “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.”
The transaction, which amounts to US $135 million, is subject to regulatory approvals and is expected to be finalized in Q2 2011.
Saudi Seamless Pipes Factory Co. Ltd. "Zamil Pipes," member of the Zamil Group Holding Co., was founded in November 2007 to address the needs of the drilling industry by developing Saudi’s first processing and end-finishing processor of Oil Country Tubular Goods.
Vallourec is a leader in premium tubular solutions primarily serving the energy markets, as well as other industrial applications. With over 20,000 employees, integrated manufacturing facilities, advanced R&D, and presence in more than 20 countries, Vallourec offers global solutions to meet the growing energy challenges.
