Vallourec has reached an agreement to acquire Saudi Seamless Pipes Factory Co. Ltd (Zamil Pipes), the first processing company of seamless OCTG in Saudi Arabia. Located in Dammam, Zamil Pipes is close to Vallourec’s new VAM threading plant which is currently under construction and due to be commissioned in H2 2011. In complement to this project, the acquisition of Zamil Pipes will provide Vallourec with ready-to-run heat treatment capacity and threading facilities of up to 100kt of pipe per year. With these two operations, Vallourec will reinforce its local presence in the Kingdom, through additional finishing capacities and reduced lead-times to serve the premium OCTG market in Saudi Arabia. The transaction amounts to USD 135 million and is subject to regulatory approvals and is expected to be finalized in Q2 2011.
