core sector communique

High-end Seamless Pipe Steelworks in Brazil Produces its First Steel Pipe

Vallourec & Sumitomo Tubos do Brasil Ltda (VSB), a seamless pipe joint venture formed by Sumitomo Metal Industries, Sumitomo Corporation and Vallourec, began a test operation at its integrated seamless pipe steelworks, by successfully piercing its first billet at 9:00 p.m. local time on December 11th, 2010.

Following the completion of the rolling mill of this time, upstream facilities, including charcoal blast furnaces that enable carbon neutral iron making processes, will begin operation in the second quarter of 2011. Then a full operation as an integrated blast furnace steelworks will commence.

VSB plans to obtain approvals from the American Petroleum Institute (API) and its customers such as major oil companies and fully ramp up the steelworks by the first half of 2012 in order to meet growing demand for global energy development.

1. Company name:	Vallourec & Sumitomo Tubos do Brasil Ltda
2. Location:	Jaceaba, State of Minas Gerais, Brazil
3. Facilities:	2 blast furnaces, seamless pipe manufacturing plant, and environmental and other facilities
4. Number of employees:	Approximately 1500 (projected)
5. Production capacity:	600,000 metric tons of seamless pipe per year
		(Sumitomo and Vallourec will each sell 300,000 tons.)
	1,000,000 metric tons of crude steel per year
		(of which 300,000 tons will be shipped to Vallourec.)