Creating long term value
Economic responsibility consists in ensuring the company’s long-term viability, strengthening its ability to compete and developing the conditions necessary for growth:
Value creation
With its focus on providing premium tubular solutions for the growing energy market and by strengthening its international presence, the Group has succeeded in delivering profitable growth. Its ability to resist during a period of economic crisis has improved to the benefit of shareholders and stakeholders.
Vallourec’s dividend policy is to distribute, over the long term, an average of 33% of consolidated net income.
Investment & acquisitions
Vallourec has increased spending on strategic investments and targeted acquisitions over the last few years, increasing its proximity to customers and strengthening its position in markets where there is strong growth potential. Recent investments include the construction of VSB, a new steel and tube mill in Brazil, due to start production towards the end of 2010, the extension of Valinox Nucléaire in Montbard, France, which will be completed in 2011 and the new premium tube mill in the United States.
Innovation
By placing innovation at the heart of its strategy, Vallourec is ensuring it has the capability and capacity to offer its customers reliable, high-performance, technological solutions to meet their current and future needs The Group’s five research centres, equipped with the latest investigative and modelling tools, enable the development of new products and processes.
Products
Over many years, Vallourec has developed new products which respond to changing requirements to protect the natural environment. These products include:
- Cleanwell, a grease-free lubricant for premium connections – used notably for offshore wells.
- Expandable tubes and connections – used to repair damaged wells and extend the useful life and maximise recovery of wells as they approach depletion
- High-alloy tubes designed to resist extreme temperatures and pressures for the next generation of power plants, increasing efficiency and significantly reducing CO2 emissions.
Value distribution
In addition to its shareholders, other stakeholders benefit from the sales and results of the Group. Employees, suppliers, customers, local and national governments all benefit from the value created by the company.