VAM® (Changzhou) Oil and Gas Premium Equipments Co., Ltd. commenced commercial operation in early October at a seamless pipe threading plant in China. The opening ceremony for this plant, which will thread seamless pipes used for Chinese oil and natural gas development, focusing on VAM®* premium joints, was held on November 8. VAM® (Changzhou) Oil and Gas Premium Equipment is a joint venture between Sumitomo Metal Industries, Ltd. (Sumitomo Metals), Sumitomo Corporation (Sumitomo Corp.) and Vallourec.

In China, oil and natural gas development is surging and drilling environments are becoming more severe. As a consequence, demand for premium joints for seamless pipes used in oil and natural gas development is rising. Sumitomo Metals and Sumitomo Corp. have been stepping up sales activities in China, recognizing it as one of the most important markets for seamless pipes. The commencement of operations at the new facility will further enhance their ability to sell Sumitomo Metals-made high-grade seamless pipes to Chinese oil companies.

Sumitomo Metals and Vallourec have been working together since 1976 in the field of VAM® premium joints. Moreover, Sumitomo Metals, Sumitomo Corp. and Vallourec have been operating VAM threading businesses in the U.S., Indonesia and Vietnam.

* VAM® is the brand name of a premium joint for seamless pipes. Sumitomo Metals and Vallourec have jointly developed the technology for VAM®, which has captured the largest market share worldwide.

<Profile of the Business>
1. Company name: VAM (Changzhou) Oil and Gas Premium Equipment Co., Ltd.

2. Business:

Threading seamless pipes for oil and natural gas development in  China, focusing on VAMR premium joints

3. Location: Changzhou, China
4. Ownership: Vallourec 51%, Sumitomo Metals 34%, Sumitomo Corp. 15%
5. Production capacity: 50,000 metric tons/year
6. Employees: Approximately 160

<Reference>
Opening Ceremony of New Plant

1)	Date: November 8, 2007
2)	Main Attendees: Sumitomo Metals:  Saburo Eguchi   Managing Executive Officer  Hisashi Nakagawa Managing Executive Officer

Sumitomo Corp.:

Shinichi Sasaki	Executive Officer, Deputy General Manager for China, President, Sumitomo Corporation (Shanghai) Limited
Masaru Nakamura	Corporate Officer, General Manager, Tubular Products Division

Vallourec:

Jean-Yves LeCuziat	Managing Director, OCTG Division
Pierre Frentzel	Manging Director, OCTG Europe
Philippe Emery	Deputy Managing Director, OCTG Europe