Strengthened presence in China
The acquisition of Anhui Tianda Oil Pipe marks an important milestone in Vallourec’s Transformation Plan and represents a major step change to Vallourec’s international industrial footprint.
Vallourec has been working closely with Tianda ever since the acquisition in 2011 of 19.5% of its share capital. The opening up of the Chinese market to foreign investors and the recent modification of its steel policy enabled the company to go even further and in January 2016, the acquisition agreement between Tianda and Vallourec was reached. On 23rd November 2016, the Group celebrated the successful completion of the acquisition with an official ceremony in Chuzhou.
Tianda’s industrial assets include a state of the art PQF* rolling mill with 550kt capacity as well as heat treatment, threading and testing facilities. The company has 1,500 employees.
From the start of the partnership with Tianda, Vallourec has operated as the exclusive distribution channel for Tianda OCTG exports and for hollows for premium connections. Now, Vallourec has put in place an integration task force to improve its industrial performance and to bring Tianda in line with Vallourec’s standards in terms of safety, quality and on-time delivery.
A qualified product line
Tianda has already obtained major qualifications from Chinese customers such as SINOPEC, CNPC or CNOOC and major operators and national oil companies including TOTAL, SHELL, KOC, ADCO, Repsol, PDVSA and PTTEP. A detailed plan has been established to develop the portfolio of customer qualifications for the full range of products over the next three years. In addition to OCTG from Tianda, Vallourec will offer VAM® premium connections from its threading facilities in China and Indonesia. Tianda will also offer line pipe to customers and international distributors such as Van Leeuwen and TC Gulf.
The integration process at Vallourec is always conducted with respect of local cultures, building upon the expertise of local management and employees. “The integration of Anhui Tianda Oil Pipe fulfils a long-term strategic vision,” said Edouard Guinotte, in charge of the Middle East and Asia Region. “By combining Vallourec’s leadership in premium solutions with Tianda’s highly competitive operations, we are able to offer a wide range of competitive products that are perfectly suited to our customers’ needs and challenges”.
* PQF = Premium Quality Finishing technology