Acquisition of Zamil Pipes
Vallourec strengthens its premium positioning in Saudi Arabia with the acquisition of Zamil Pipes on 25 November 2011, for a total consideration of € 97 million.
|Premium threading lines. (© Saudi Seamless Pipes Factory)|
This acquisition provides Vallourec with ready-to-run heat treatment capacity and threading facilities of up to 100 kt of pipe per year which will be combined with the existing project to build a VAM threading facility, on the same site. These operations reinforce Vallourec’s local presence with end-finishing facilities to serve the premium OCTG market in Saudi Arabia and the Middle East.
Philippe Crouzet, Chairman of Vallourec’s Management Board stated: “Increasingly complex and challenging drilling conditions and important safety and environmental considerations are driving demand for premium OCTG and VAM® connections – the leading premium connections in the world. These investments are fully in line with our strategy to strengthen our local presence and provide more premium solutions both in North America, where we are a leading domestic supplier of OCTG; and in Saudi Arabia, in response to growing demand from the world’s largest oil producer, Saudi Aramco, and other customers in the Middle East.”
Saudi Seamless Pipes Factory Company Limited “Zamil Pipes”, member of the Zamil Group Holding Company, was founded in November 2007 to address the needs of the drilling industry by developing the Saudi’s first processing and end-finishing processor of Oil Countries Tubular Goods “OCTG”.
(© Saudi Seamless Pipes Factory)