RI venture in Vietnam

RI venture in Vietnam

TOKYO (Reuter): Sumitomo Metal Industries Ltd. of Japan said it will form a joint venture in Vietnam with an Indonesian company and three other firms to process joints for seamless steel pipes.

The venture, called Vietubes Corp, is 12.6 percent owned by Sumitomo Metal Industries, 12.6 by Sumitomo Corp., 37.8 percent by Indonesia's PT Citra Tubindo, 30 percent by Vietnam's state- owned Petrovietnam, and seven percent by France's Vallourec, Sumitomo Metal Industries said in a statement.

Vietubes, capitalized at US$2.6 million, is located in Vung Tau, the company said. Total investment in the venture will be $10.2 million.

The venture will process high-quality joints called Premium Joints for Oil Country Tubular Goods.

Oil Country Tubular Goods are pipes used in oil and gas development projects.

The venture is expected to start operating in the middle of 1996, and its annual output is expected to be 25,000 tons, the company said.