Vallourec announces the creation of “Vallourec Tubos para Indústria”, a joint venture with the Açotubo Group
São Paulo, October 2021 – Vallourec, the world leader in premium tubular solutions with a large presence in Brazil, announces the launch of the company Vallourec Tubos para Indústria (VTI), a joint venture between its Drawn and Profiled Tubes Unit and the Cold Drawn Tubes Division of the Açotubo Group. Bringing together the quality and solidity value of two major market references, the new business will focus on the supply of steel Cold Drawn tubes and tubular solutions for the industry in general, especially for the automotive, energy, machinery, and industrial equipment segments.
More than ever, the market seeks delivery reliability, high technical quality, flexibility, and cost competitiveness, just some of the characteristics that have made Vallourec and Açotubo known.
“Both companies have a great cultural affinity. Vallourec reinforces its position in the sectors it already serves, but expanding its product portfolio with VTI, while Açotubo increases its share in the industrial sector. The complementary production processes and organizational similarity formed the ideal scenario for closing the partnership”, explains Rodrigo Rennó, CEO of VTI.
. “In the case of Açotubo, the Steel Tubes Division continues to focus on distribution, and we will continue to buy from several market players. The Drawn Tubes Division becomes part of VTI in a independent business, which will also be able to supply.”, emphasizes Bruno Bassi, CEO of Açotubo Group.
Numbers and perspectives
The shareholding division will be 75% of Vallourec and 25% of Açotubo in shareholdings, and the management will be carried out entirely by Vallourec. In terms of structure, the company will be headquartered in Minas Gerais, in addition to two plants in São Paulo, with over 500 employees.
The joint venture will have an annual capacity to cold drawn between 60 and 70 thousand tons of seamed and seamless tubes, besides cutting, bending, and transforming the tubes into parts and components. The focus is on the domestic market, but exports are also part of the plan. “Export is in Vallourec’s DNA and, considering that Brazil will be the first place in the world where we will operate with the products that will be made available by VTI, this opens up possibilities abroad as well”, says Rodrigo Rennó.
While the launch of VTI brings dynamism to the market, customers will also benefit. A broader portfolio reduces the purchasing effort. Additionally, the merger will result in optimized management and operations, directly impacting greater agility and flexibility.
“We are very happy to count on the expertise of Açotubo Group in this venture, bringing its culture of excellence in customer service with transparency and agility”, said the VTI executive. “It is an honor to run a project with a sister company like Vallourec. This brings the security that the market needs”, concludes the CEO of Açotubo.
