French seamless steel pipe maker Vallourec is reorganizing its European business structure and downsizing its organization in order to focus on European facilities. Vallourec in latest quarterly financial report said “In November 2021, Vallourec decided to launch the disposal process of all its German manufacturing assets in order to find a new operator, better positioned to profitably serve the European Industry markets. The disposal process has been carried out and no credible buyer has been identified. As a result, Vallourec is launching the closure process of its German assets which will result in a 685,000 tonnes reduction in less competitive rolling capacity. The closure process will take place over the next two years and will include the sale of the land and buildings.”Vallourec also said that German rolling activity for Oil & Gas will be relocated to Brazil. Vallourec said “This transfer will require EUR 110 million of capex in our Brazilian operations to support the transition of premium tubular volumes from Europe by end 2023.”Vallourec added “The closure of the German assets implies a further rationalization of the other European assets which were finishing tubes rolled in Germany. This rationalization will entail the consolidation of all European threading activities in a single location in Aulnoye in France. The Group will launch the closure process of the heat treatment line of Saint-Saulve in France and of the threading line in Bellshill in Scotland. In addition, Vallourec will complete the divestiture of Vallourec Bearing Tubes.”
French seamless steel pipe maker Vallourec is reorganizing its European business structure and downsizing its organization in order to focus on European facilities. Vallourec in latest quarterly financial report said “In November 2021, Vallourec decided to launch the disposal process of all its German manufacturing assets in order to find a new operator, better positioned to profitably serve the European Industry markets. The disposal process has been carried out and no credible buyer has been identified. As a result, Vallourec is launching the closure process of its German assets which will result in a 685,000 tonnes reduction in less competitive rolling capacity. The closure process will take place over the next two years and will include the sale of the land and buildings.”Vallourec also said that German rolling activity for Oil & Gas will be relocated to Brazil. Vallourec said “This transfer will require EUR 110 million of capex in our Brazilian operations to support the transition of premium tubular volumes from Europe by end 2023.”Vallourec added “The closure of the German assets implies a further rationalization of the other European assets which were finishing tubes rolled in Germany. This rationalization will entail the consolidation of all European threading activities in a single location in Aulnoye in France. The Group will launch the closure process of the heat treatment line of Saint-Saulve in France and of the threading line in Bellshill in Scotland. In addition, Vallourec will complete the divestiture of Vallourec Bearing Tubes.”
