Sumitomo Metals Establishes a Seamless Pipe Sales Subsidiary in Brazil
Sumitomo Metal Industries, Ltd. (Sumitomo Metals) decided to establish a sales subsidiary for seamless pipe that will be manufactured in our integrated steel works in Brazil, with North and South Americas as sales territories. This local sales subsidiary will enable us to build a sales structure that is close to both our customers and mill.
1. Reasons for the new subsidiary
Sumitomo Metals has established Vallourec & Sumitomo Tubos do Brasil Ltda (VSB), a joint venture to manufacture seamless pipe in an integrated steel works in Brazil, with Vallourec Group. VSB plans to supply 300,000 tons of seamless pipe a year to Sumitomo Metals and we are to sell them under our brand name. We have decided to establish a local subsidiary in Brazil in order to conduct sales activities efficiently in the Americas.
The new subsidiary will execute great customer services by having staff in charge of quality assurance and delivery control as it sells products manufactured by VSB under Sumitomo Metals’ brand. This subsidiary will also be engaged in investment control and management of VSB. Accordingly, it will hold VSB shares as investment in kind.
2. Outline of the subsidiary
|(1) Corporate name:||To be decided|
|(2) Location:||Rio de Janeiro, Brazil|
|(3) Corporate entity:||To be a Limitada (equivalent to Japan’s limited liability company)|
|(4) Representative:||To be decided|
|(5) Business activities:||Sale of seamless pipe (for North and South Americas)|
|Quality assurance and delivery control of VSB products|
|Investment control and management of VSB|
|(6) Number of employees:||About 15|
|(7) Capital:||Approximately 40 billion yen in total. In addition to 600 million yen in cash,|
|investment in kind by use of VSB shares.|
|(8) Establishment date:||November 2010|
|(9) Shareholders:||Sumitomo Metals Group 100%|
This initiative will not have material impact on Sumitomo Metals consolidated and unconsolidated results for the fiscal year ending March 2011.
1.Vallourec & Sumitomo Tubos do Brasil Ltda.
|(1) Location:||Jeceaba Minas Gerais, Brazil|
|(2) Representative:||Tancredo Martins (President)|
|(3) Business activities:||Manufacturing high-grade seamless pipes|
|(4) Number of employees:||1,047 (as of June 2010)|
|(5) Capital:||4.6 billion BRL|
|(6) Shareholding ratio:||Sumitomo Metals. 39%, Sumitomo Corporation 5%, Vallourec 56%.|
|(7) Establishment:||July 2007|
|(1) Location:||Boulogne Billancourt Cedex, France|
|(2) Representative:||Phillippe Crouzet (Chairman of the Management Board)|
|(3) Business activities:||Manufacturing and selling pipes for oil, gas and others|
|(4) Number of employees:||approximately 18,600 (as of December 2009)|
|(5) Capital:||229 million EUR|