Vallourec's new finishing plant in Saudi Arabia receives qualification


Vallourec's new finishing plant in Saudi Arabia receives qualification

Boulogne-Billancourt, FRANCE -- Vallourec announced the full qualification of its new finishing plant in Saudi Arabia. Located in Dammam, this unit is dedicated to the heat treatment and threading for the full range of VAM premium connections, with an annual capacity of 100,000 tons. It will mainly supply Saudi Aramco, the Kingdom's national oil company, along with other regional operators. With the qualification of this plant, Vallourec is reinforcing its presence in the Middle East where numerous oil and gas projects require high added-value tubular solutions.

Resulting from the acquisition in 2011 of Saudi Seamless Pipes Factory Company Limited - "Zamil Pipes", the finishing plant comprises a heat treatment unit, a new threading unit and coupling shop (the last 2 built by Vallourec). It is now qualified to carry out all operations required in the production of premium connections using hollows provided by Vallourec's pipe mills.

The new plant is expected to generate around 100 jobs, bringing the total number of employees working there by the end of 2013 to 200.

Didier Hornet, Managing Director of Vallourec's Oil & Gas Activities, said:"The qualification of our new upgraded finishing plant by Saudi Aramco gives Vallourec a clear competitive edge in the Kingdom and in the Middle East, where the demand for local content is increasing. This investment will enable us to support local customers with the most advanced premium products for their growing gas projects, and with increased services thanks to higher flexibility and shorter delivery times."

The new finishing plant has already received an order for 20,000 tons of premium connections.

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