Philippe Guillemot, CEO of Vallourec, outlines the company's transformative journey over the last year. Under his leadership, Vallourec has pivoted towards long-term profitability and growth. By focusing on value over volume and diversifying into low-carbon sectors, the company aims for a sustainable future.
When Philippe Guillemot took over as the CEO of Vallourec in Spring 2022, the company was struggling. However, just a year later, the tides have turned. Thanks to the "New Vallourec" plan, the company is now focused on profitability under all market conditions and promises a long-term future.
The New Vallourec plan, initiated in March 2022, aims to transform the company on three key fronts: sales, organization, and industrial footprint. The goal is to restore profitability and focus on long-term growth. It’s not just a financial restructure; it's a platform for the future.
Vallourec has shown significant improvement in its finances. In the first quarter, the company earned a profit of $156 million, compared to a loss of $35 million the previous year. This positive trend supports the objective of reducing debt, aiming for net zero debt by 2025.
Under the New Vallourec plan, the company is broadening its focus beyond fossil fuels. Targeting a key role in the low-carbon economy by 2050, Vallourec is investing in innovative products for green hydrogen, geothermal applications, and more.
Innovation is a significant part of Vallourec's new direction. For example, the company is working on wire arc additive manufacturing (WAAM) to improve manufacturing efficiency and sustainability. Additionally, Vallourec aims to be a leader in carbon capture and storage technology.
Beyond just financial and technological transformations, Vallourec is committed to sustainability. The company has science-based targets to reduce its carbon emissions and is also focusing on issues like diversity, equity, and inclusion.
Under the leadership of Philippe Guillemot, Vallourec has embarked on a promising new industrial journey. Thanks to the New Vallourec plan and a focus on sustainability and innovation, the company is well-positioned for long-term success.