Vallourec

Vallourec SA
legal form	Société Anonyme
ISIN	FR0000120354
founding	1957
Seat	France , Boulogne-Billancourt
management	Phillippe Crouzet (CEO)
Number of employees	20,964 (2015)
sales	3.75 billion euros (2017)
Branch	Metal processing
Website	www.vallourec.com

Vallourec is a manufacturer of seamless steel tubes and specific tube applications, which are primarily intended for the energy markets (oil and gas industry, power plant technology), but also for other industrial markets (mechanical engineering, automotive industry, construction industry). Vallourec employs 20,000 people and has integrated production facilities in more than 20 countries. The group of companies is listed on the Euronext .

Company history

The history of the Vallourec Group began at the end of the 19th century with the development of the process for rolling seamless tubes by the Mannesmann brothers in Germany . The first seamless steel pipe was made in 1886.

In 1893 the Mannesmannröhren-Werke company settled in Düsseldorf. After the Second World War, the group was disentangled and re-founded in 1955 under the name Mannesmann AG.

The French pipe manufacturers took over the production process of the Mannesmann brothers. Industrial sites were established in both northern France and Burgundy . The Société Française des Corps Creux in Montbard was one of the historical pillars of the group. It was renamed Société Métallurgique de Montbard in 1899 and was listed on the Paris Stock Exchange in 1899 .

In France in 1931 an industrial and commercial partnership was established between the Valenciennes , Louvroil and Recquignies branches . These branches were managed by a newly founded company called Vallourec. The name is made up of the first syllables of these three cities.

The merger of the Société des Tubes de Valenciennes and the Société Louvroil-Montbard-Aulnoye followed later. This group became the second largest manufacturer of seamless steel tubes in France and was listed on the Paris stock exchange in 1957 under the name Vallourec. At the same time, the company of the same name, which had existed since 1930, renamed Sogestra.

In 1960 the VAM® connection was brought onto the market, which would develop into one of the group's main products. In 1967 Vallourec took over the entire pipe production of its biggest competitor, Lorraine-Escaut. In the course of the 1970s, Vallourec built the integrated steel and tube plant in Saint-Saulve in the Valenciennes area and established partnerships in the industrial and R&D sectors, particularly with the Japanese tube manufacturer Sumitomo (now Nippon Steel & Sumitomo Metal Corporation ).

1997 was a turning point for the group. Thanks to the joint venture Vallourec & Mannesmann Tubes (V & M Tubes), which arose from the connection with the German company Mannesmannröhren-Werke, it became the global market leader for seamless steel tubes.

The group continued its international development with extensive acquisitions, particularly in Brazil and the United States.

In June 2005 Vallourec took over overall control of V & M Tubes by buying up the 45% stake in Mannesmannröhren-Werke.

In 2006 the group was included in the French stock index CAC 40. In 2013 the German business unit became Vallourec Deutschland GmbH.

The group continued to develop its oil and gas operations and increased its presence in China and the Middle East, as well as investing in tube manufacturing for nuclear power plants.

The recent history of Vallourec has been shaped by the following extensive investments: firstly, the construction of a new integrated production plant in Jeceaba in Brazil with the traditional partner Sumitomo (Nippon Steel & Sumitomo Metal Corporation - NSSMC) and, secondly, the construction of a new pipe mill in Youngstown (Ohio, USA), the drilling sites to promote shale oil and gas ( "fracking") supplies in North America.

activity

Vallourec supplies the oil and gas industry, power plant technology, petrochemicals , mechanical engineering and the automotive industry with premium solutions for pipe applications. The group specializes in complex applications that are used under extreme conditions.

oil and gas

For the oil and gas market, Vallourec manufactures pipe solutions for extraction and production (casing and tubing, connections and risers or casing, extraction pipes, connections, risers), for hydrocarbon transport (pipes and integrated welding solutions), and provides services for the petroleum industry and Pipes for refineries. Vallourec specializes in products for extreme conditions, such as deep wells, corrosive environments, deflection shafts, high pressure and high temperature.

Vallourec's customers in this area are oil companies, engineering offices or distributors.

Power plant technology

For the electricity generation market, Vallourec manufactures premium pipes for fossil power plants as well as for nuclear power plants, the specialty of which is their high temperature and pressure resistance. Vallourec's relevant customers include manufacturers of boilers for combustion power plants and manufacturers of steam generators for nuclear power plants.

Industry

Vallourec also produces pipes for the mechanical engineering, automotive and construction industries.

The construction pipes manufactured by Vallourec are used in mechanical engineering (hoists, agricultural machines, hydraulic cylinders, cranes, etc.). Vallourec also supplies automotive and OEM manufacturers with pipes and components.

In the construction sector, Vallourec produces construction tubes that are used for architectural projects, in steel construction for industry, public and private clients. Vallourec has supplied the pipes for the construction of the steel structure of the Soccer City Stadium in Johannesburg in South Africa , as well as the Stade de France , the Grande Arche de la Défense in France, the Wembley Stadium in London , the airport in Bangkok in Thailand , just like the ones structural elements required to build the top of One World Trade Center , 541 meters (1,776 feet) high .

Distribution of sales in 2016

Oil and gas industry: 64.8%
Power plant technology: 16.4%
Construction and other: 18.8%

Innovation and research and development

Vallourec employs five hundred engineers and technicians for R&D tasks, which are distributed across the production sites and 6 research centers in France (Aulnoye), Germany (Düsseldorf and Riesa), Brazil (Rio de Janeiro and Belo Horizonte) and in the USA (Houston) .

The Riesa research center is characterized by a special concept. It is a hot rolling laboratory, similar to a small hot rolling mill, in which small-scale tests can be carried out true to nature without affecting production at the production sites.

The group invested € 82 million in this department in 2015.

Locations

In Germany, Vallourec has 3 production plants in Mülheim (one plant), Düsseldorf-Rath (two plants) and 2 research centers in Düsseldorf and Riesa. The rolling mill in Düsseldorf-Reisholz, which recently had around 300 employees, was shut down in June 2020 after 121 years of operation.

Vallourec is represented with 50 production plants in over 20 countries.

For around fifteen years, Vallourec has expanded its industrial presence in Asia ( China and Indonesia ), Brazil and the Middle East by increasing the local production share.

Distribution of sales by geographic area in 2013:

North America: 26.2%
Europe: 19.1%
South America: 21.2%
Asia and Middle East: 26.2%
Other countries: 7.3%

Financial data

**Financial data in millions of euros**
year	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015
sales	2,500	2,550	2,376	3,038	4,307	5,542	6.141	6,437	4,465	4,491	5,296	5,326	5,578	5,701	3,803
Bottom line								967	518	410	401	217	262
Employees	17,247	17,419	17,507	17,484	17,542	18,217	16,874	18,561	18,567	20,561	22.204	23,177	24.053	23,709	20,964

Exchange information :

Shares listed on Euronext's Euronext Paris Stock Exchange.
Equity indices: Euronext 100, MSCI World Index
ISIN security number = FR0000120354
In the United States, Vallourec has a sponsored Level I program of American Depositary Receipts (ADR) (ISIN security number: US92023R2094, ticker code: VLOWY). The ratio between ADR and original Vallourec share is 5: 114.

Major shareholders as of December 31, 2013 :