Boulogne-Billancourt, 20 July 2007 – Vallourec
announces that it has signed a preliminary agreement regarding the sale to
ArcelorMittal of two French companies – Vallourec Précision Soudage (“VPS”) and
Vallourec Composants Automobiles Vitry (“VCAV”), both fully owned subsidiaries
VPS is specialised in the production of welded
precision tubes for the automotive industry for the manufacture of suspension
and body in white components, cars seats, and cold drawn products. It produces
around 100,000 tonnes of welded tubes per year and annual sales are around €
100 million. ArcelorMittal is one of the main suppliers of coils to VPS. VPS
employs 320 people in its factories in Hautmont and Chevillon, France.
Involved at the very early stages of design
and production of tubular components, in partnership with the automakers
engineering office, VCAV is specialised in chassis functions and passive safety
solutions (suspension and crash components). Annual sales are around € 45
million. VPS is the supplier of welded tubes to VCAV. VCAV employs 230 people
in its factory at Vitry-Le-François, France.
The planned combination of VPS and VCAV with
ArcelorMittal will enable both of these companies to benefit from the strong
presence of ArcelorMittal within the European automotive industry.
The project will be presented to the relevant
employee representative bodies for consultation. Completion of the transaction
is conditional upon a clearance decision by the competent competition