The transaction amounts to $35 million and is subject to regulatory approvals and is expected to be finalized soon.
Located in Dammam, Zamil Pipes is close to Vallourec’s new plant, which is currently under construction and due to be commissioned in the second half of this year.
In complement to this project, the acquisition of Zamil Pipes will provide Vallourec with ready-to-run heat treatment capacity and threading facilities of up to 100 kt of pipe per year.
With these two operations, Vallourec will reinforce its local presence in the Kingdom, through additional finishing capacities and reduced lead-times to serve the premium OCTG (Oil Country Tubular Goods) market in Saudi Arabia.
Philippe Crouzet, chairman of Vallourec’s management board, said: “With local heat treatment and premium threading facilities, Vallourec and Zamil Pipes will enjoy an unmatched competitive position. The combination of Vallourec’s expertise in VAM premium OCTG technology and Zamil Pipes processing facilities will strengthen the local offer to serve Saudi Aramco and other customers in the Middle East.”
Khalid Al Zamil, chairman of Zamil Pipes and executive director of Zamil Group, said: “We are proud to contribute to the local establishment of a world class premium OCTG supplier for the oil and gas industry in Saudi Arabia and wish Vallourec the best of success.”
Zamil Pipes, member of the Zamil Group Holding Company, was founded in November 2007 to address the needs of the drilling industry by developing the Saudi’s first processing and end-finishing processor of Oil Countries Tubular Goods .
Vallourec is a world leader in premium tubular solutions primarily serving the energy markets, as well as other industrial applications.
