Sumitomo Corp Takes 19.47% Shares in U.S. V&M2

Sumitomo Corporation announced on Friday the firm acquired 19.47% shares in U.S. small-diameter seamless steel pipe maker, V&M Two (V&M2), from Vallourec of France. Vallourec indicated the share acquiring cost totaled approximately US$ 100 million. Sumitomo Corp aims to enhance seamless steel pipe business in the U.S.A. through V&M2 and strengthen long time partnership with Vallourec.

V&M2 was established in December 2009, headed in Delaware. V&M2 is now constructing a small-diameter seamless steel pipe plant in Ohio, next to the existing plant of V&M Star (VMS), another U.S. seamless steel piper maker headed in Delaware. Sumitomo Corp also holds 19.47% shares in VMS. V&M2’s plant will start commercial production in second half of 2012 with output capacity at around 350,000 tonnes per year.

VMS was established in July 2002. The company’s productive capacity is 500,000 tonnes per year with 800 employees.

V&M2 and VMS eye business integration in future. They target business expansion when demand for small-diameter seamless steel pipe is increasing along with development of new energy sources such as shale gas.