New Routes to Competitiveness

In 2019 and 2020, Vallourec took full advantage of its industrial routes, boosted by the increasing competitiveness of China and Brazil.

04/13/2021

Supply chain

New routes to competitiveness

14/04/2021 – Strategy

In 2019 and 2020, Vallourec took full advantage of its industrial routes, boosted by the increasing competitiveness of China and Brazil. A new geographical configuration offering ever greater industrial and commercial performance and agility.

United States
Supplying the local market with oil and gas
Europe
A technological excellence center with a specialization in very high-end products
Brazil
A very competitive production center
=> Improvement in skills to give its products an increasingly premium position
=> A fully integrated production chain, from the supply of raw materials (from mines and forests) to the steelworks, tubing and finishes
=> 50% of its production exported (mainly to the Middle East and West Africa)
China
A very competitive production center
=> Ramp-up of industrialization and production of more sophisticated products at the Tianda site
=> 50% of its production exported (mainly to the Middle East and East Africa)

Since 2016, Vallourec’s industrial footprint has responded to a challenge: being able to effectively respond to demand wherever it is, with an appropriate and high-quality product, at the right price, via four hubs with very specific attributes – the United States, Europe, China and Brazil.

An agile and sector-leading industrial asset

This geographic flexibility therefore makes it possible to provide an agile response in an increasingly changing, constrained and competitive international environment. This optimized competitiveness, ensuring that quality, responsiveness and profitability requirements are met, is illustrated by the ADNOC contract in Abu Dhabi, which will harness all of Vallourec’s local industrial power and the strength of its global coordination, with products from Brazil, Europe and China. Similarly, this organization enabled Vallourec to successfully complete a large order of Line Pipe products between 2018 and 2020 for Van Leeuwen, one of its long-standing clients. Two sites were called on to ensure that expectations were met, in Youngstown in the United States, for small diameters, and in Rath Plug in Germany, for other sizes. This agility was acknowledged by the customer, thereby securing the contract.

To enable Vallourec's new industrial routes to reach full maturity by 2025