Japan : Nippon Steel & Sumitomo Metal Agrees to Acquire WSP Houston s Production Facilities in the U.S.
Objectives of Acquisition:
The U.S. is the world s largest OCTG market and is expected to grow further. With the aim of responding to our customers demand for OCTGs on the back of strong energy-related steel material demand in the U.S., Southern Tube has decided to acquire manufacturing facilities for heat treatment and threading, make an additional capital investment, and manufacture high-end OCTGs which can withstand severe environments. Base materials will be provided by Vallourec & Sumitomo Tubos do Brasil Ltda (VSB), an integrated seamless pipe steelworks, in Brazil and the Wakayama Steelworks in Japan. Southern Tube will use the acquiring facilities for heat treatment and threading . NSSMC intends to utilize its accumulated customer assets, technology, and product capability and accelerate its global strategy by fully entering the U.S. market. ?
Outline of Acquisition:
Assets to acquire:
Production facilities held by WSP Houston OCTG Inc., in the U.S., including land, buildings, and equipments (heat treatment, threading, and other facilities),
Approximately 3.4 billion yen?US$43 million),
Post-acquisition business outline:
Company name: Southern Tube LLC (Subsidiary of SMI Oil Field Services Inc. NSSMC Group owns a 100% stake.),
Business activities: Heat treatment and threading of OCTG, and others.
Capital spending: Invest in facilities to enable production of high-end OCTGs.
2012 Al Bawaba (Albawaba.com)
Provided by Syndigate.info an Albawaba.com company
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|Date:||Oct 5, 2012|
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