Sumitomo, Vallourec deal in pipeline

Sumitomo, Vallourec deal in pipeline

TOKYO : Japan's Sumitomo Metal Industries Co. Ltd. has formed an
alliance with Vallourec and Mannesmann Tubes of France to make
seamless steel pipes, a daily said Saturday.

Under the accord, the two firms are to jointly develop pipes
to be used in oil and natural gas exploration, the Nihon Keizai
Shimbun said, quoting sources close to the deal.

The major Japanese steelmaker and the largest steel tube and
pipe maker in Europe will mainly cooperate on the development of
corrosion-resistant pipes, the business daily said.

Their tie-up is based on expectations that demands for the
pipes will grow further in line with continued expansion of oil
and gas field development in the Middle East and Asia, the
newspaper said.

The two have already inspected each other's relevant pipe
plants, and would soon sign a specific technical agreement, the
daily said, adding that they would also standardize product-
inspection technologies. --AFP