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