Nippon Steel, Sumitomo Metal Acquire U.S. Heat-Treatment Facilities
Nippon Steel and Sumitomo Metal Corp. (NSSMC), through its wholly owned U.S. subsidiary Southern Tube LLC, entered into a definitive agreement with WSP Houston OCTG Inc. to acquire its production facilities for heat treatment and threading of oil-country tubular goods (OCTGs) for approximately $43 million. After the acquisition, Southern Tube plans to make an additional capital investment and target full-fledged commercial operation by 2015. The company plans to manufacture high-end OCTGs that can withstand severe environments. Base materials will be provided by Vallourec & Sumitomo Tubos do Brasil Ltda in Brazil and the Wakayama Steelworks in Japan.