News Release (Sumitomo Corp.)
Feb. 26, 2009
Sumitomo Corporation Strengthens Seamless Pipes Business in the US
Sumitomo Corporation (President and CEO: Susumu Kato; "SC") and Sumitomo Metal Industries, Ltd. (President: Hiroshi Tomono; "Sumitomo Metals") announced today that they will jointly acquire a 49% equity interest (Sumitomo Metals 34%, SC 15%) from Vallourec SA (Chairman: Pierre Verluca; "Vallourec") of V&M Atlas Bradford ("AB"); recognized for its premium OCTG connection brand known as Atlas Bradford® in North America. In addition, SC will also acquire a 19.47% equity interest in V&M TCA ("TCA"), which specializes in heat treatment operations for seamless pipes used for oil and natural gas development. These investments will further strengthen our long standing collaboration in the field of seamless pipes business in the US.
In order to further enhance our business, on February 27th, 2009, SC, Sumitomo Metals and Vallourec will integrate the North American joint venture VAM USA (joints threading business) with AB. The name of the merged entity will become VAM USA LLC.
Backed by growing world energy demand expected to continue in the mid to long-term, the demand for high-grade seamless pipes and premium joints, durable even in severe drilling environments, is expected to expand steadily. AB and TCA is known for providing such high-grade technology.
Based on the equity participation in AB and TCA, SC will further enhance its seamless pipes business in the US.
Corporate Communications Department, Sumitomo Corporation
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