Sumitomo Metals to Enlarge Stable Supply Source of Oil Well Pipe

Sumitomo Metal Industries strengthens sales activities of oil well steel pipes against oil companies, oilfield engineering companies and oil well equipment makers before Vallourec & Sumitomo Tubos do Brazil (VSB), a joint venture between Sumitomo Metals and Vallourec in Brazil, starts plant operation of seamless steel pipe. Sumitomo Metals aims to raise its sales share of seamless steel pipe for oil well.

Sumitomo Metals’ oil well pipe sales are mainly based on long-term contracts at 60% rate. The firm can ensure stable sales volume thanks to long-term contracts mainly with oil majors. In 2011, VSB will start operation and production capacity of seamless steel tube will expand by 300,000 tonnes per year. Sumitomo Metals needs to seek stable supply sources to cover VSB’s expansion.

Sumitomo Metals tries to increase sales volume of oil well pipe against existent long-term contract users. At the same time, the firm aims to conclude long-term contracts with new customers including national oil companies and independent oil companies mainly in Middle East, Africa and North America. The firm utilizes Sumitomo Corporation’s supply chain management to meet wide range orders for steel tube applied to various oil wells.

Sumitomo Metals also strengthens sales approaches to oil well service companies and oil well equipment makers. The firm tries to serve technical proposals at the early phase of oil well designing in cooperation with Sumitomo Corporation.