Sumitomo Metal Industries Ltd. said Wednesday that it and French partner Vallourec have agreed to strengthen their alliance in Brazil and China for threading and the production of seamless steel pipes as demand grows in line with oil and natural gas development.
Sumitomo Metal and Vallourec will set up a joint venture in Brazil to produce high-grade seamless pipes, while Sumitomo Metal and trading house Sumitomo Corp. will invest in a seamless pipe threading subsidiary in China established by the French company.
In Brazil, Sumitomo Metal and Vallourec, along with Sumitomo Corp., will invest a combined 200 billion yen to establish the joint venture, which will build an integrated steel plant, including blast furnace and seamless pipe milling facilities, Sumitomo Metal said.