ArcelorMittal has signed a share purchase agreement to acquire a 28.4% equity interest in manufacturing company Vallourec, for a total consideration of approximately €955 million.
Vallourec, which specializes in the production of seamless and welded steel tube products for industrial applications, said it expects to generate strong EBITDA for the full year due to robust tubes pricing in backlog and operational improvement.
85% of Vallourec’s 2.2Mt of annual rolling capacity is focused around low-carbon, integrated productions hubs in US and Brazil, both of which are important strategic markets for ArcelorMittal.
''As a producer of premium tubular solutions, [Vallourec] has a critical role to play in the energy transition, producing vital products for hydrogen, CCS and geothermal applications, for which demand is expected to grow.''
Aditya Mittal, CEO, ArcelorMittal
Aditya Mittal, CEO, ArcelorMittal, said: “Vallourec is a quality, high added-value tubular business, with established positions of strength in the attractive Brazilian and US markets. As a producer of premium tubular solutions, it has a critical role to play in the energy transition, producing vital products for hydrogen, CCS and geothermal applications, for which demand is expected to grow. It also has a comparatively low carbon footprint with ambitious improvement targets. We look forward to being part of the company’s future.”