Boulogne-Billancourt, 15 September 2010 -
Vallourec, world leader in premium tubular solutions, announces today that it
has reached an agreement to acquire 19.5% of Tianda Oil Pipe Company Limited
(TOP), a Chinese seamless pipe manufacturer listed on the Hong Kong stock
exchange, through a reserved capital increase. The transaction will amount to approximately
US $100 million and is expected to be finalized early 2011.
TOP manufactures OCTG (oil country tubular
goods) for the oil and gas sector since 1993, and has started in January 2010 a
new state of the art PQF® seamless rolling mill with annual
capacity of 500kt. TOP is part of Anhui Tianda Enterprise Co., Limited, based
in the Anhui province.
China represents the second largest market in
the world for OCTG after the United States. It has been growing strongly over
the recent years. Premium OCTG needs are expected to increase on the Chinese
market due to new exploration and development projects in harsher environments,
requiring more advanced drilling techniques and well designs.
By acquiring an interest in TOP, Vallourec
will increase and improve its presence on the Chinese OCTG market.
Specifically, as part of a cooperation agreement with TOP, VAM Changzhou, a
Vallourec company, will thread TOP pipes locally to serve the domestic Chinese
premium OCTG market.
Philippe Crouzet, Chairman of Vallourec’s
Management Board stated: “This participation in Tianda Oil Pipe is a step
forward in our strategy aiming at reinforcing our offer to the Chinese market.
Bringing together Tianda's newly installed tube mill with Vallourec OCTG sales
footprint and advanced technology will allow both Vallourec and TOP to improve
their respective competitiveness and take advantage of the rapid development of
the Chinese market.”
This transaction is subject to the approval of
TOP’s shareholders and to the final regulatory approvals by Chinese and Hong