Boulogne-Billancourt, 24 September 2009 -
Vallourec, world leader in the production of seamless steel tubes, today
announced that its fully-owned subsidiary VAM Drilling has reached an agreement
regarding the acquisition of Dubai-based DPAL FZCO, a well established supplier
of drill pipes, owned by Soconord Group.
The DPAL FZCO manufacturing facility located
in the Jebel Ali Free Zone (Dubai, UAE), offers a large range of drill pipes to
the oil drilling industry in the Middle East, where it enjoys an excellent
service reputation. It has an annual production capacity of 25,000 joints.
The Middle East represents an important market
for drilling products with growing requirements for premium products. This
acquisition will strengthen the presence of VAM Drilling in the Middle East,
providing local manufacturing for its major international customers operating
throughout the region and to local National Oil and Drilling Companies. VAM
Drilling will complement DPAL FZCO’s existing offer with premium products and
Philippe Crouzet, Chairman of Vallourec
Management Board, stated: “The acquisition of DPAL FZCO is a perfect example of
our strategy of targeted acquisitions to strengthen our position in growing
markets, especially in high value-added segments of the oil industry such as
drilling products. It also provides us with an industrial foothold in the Middle
East, close to our clients, in a region which is very important to us.”
The agreement is subject to regulatory
approval and the closing of the deal is expected to take place shortly.