Vallourec starts negotiations with Ascometal

Boulogne-Billancourt: Vallourec, a specialist in premium tubular solutions, has recently started exclusive negotiations with Ascometal, a producer of special steels, with a view to the sale of its majority holding in the Saint-Saulve steel mill (Hauts-de-France region). Based on a reinforced industrial and business plan, the Ascometal offer should retain the site’s 320 highly skilled employees.

Negotiations should be concluded with a final agreement being signed by the end of 2016. At this stage in proceedings, the two partners envisage creating a joint venture with Vallourec holding a 40% stake and Ascometal having a 60% holding, thus giving the latter exclusive control of operations. From an industrial viewpoint, the two shareholders will be supplied by the Saint-Saulve modern and high technology steel mill, Vallourec for its requirements in terms of special steels and Ascometal to supply its finishing units located in Dunkirk and Fos-sur-Mer, in the North and South of France. At the outset, the undertakings made by the two parties in terms of the quantities of steel produced are as follows: 175,000 tons per year for Ascometal, and 100,000 tons per year for Vallourec. These volumes would secure the steel mill’s long-term operations and competitiveness.

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