Monday, February 1, 2016

Vallourec new restructuring plan because of the fall in oil – L’Express

This is the second restructuring plan presented by the group in less than a year after a first announced in April 2015 that already included the elimination of 2,000 jobs worldwide, including 565 in France, without resorting to compulsory redundancies.

The French group also announced the reappointment of its leadership, including his boss Philippe Crouzet.

These are strong measures to reduce costs beyond the first announced plan, but that prepare our rebound and put us in a position to capture future better opportunities ” said Mr. Crouzet during a telephone press conference.

In Europe, the group is “ a reduction of 50% of pipe production capacity compared to 2014 “, through the closure of two mills in France, Saint Saulve (Nord) and Deville (Seine-Maritime), a threading line in Germany in Mülheim, and a heat treatment line in Scotland, at Bellshill, he said in a statement. The implementation will be done by the end of 2017.

Taking into account the plan presented in April, it’s about 800 to 850 posts remaining to delete in France is roughly the same figure in Germany. Outside Europe, there will be 500 additional posts deletion, mainly in Brazil “, detailed Philippe Crouzet.

The company plans a merger of its operations in Brazil, Vallourec Tubos do Brasil and Vallourec & amp; Sumitomo Tubos do Brasil, jointly owned with NSSMC and Sumitomo in a new set, Vallourec do Brasil Soluções Tubulares, 84.6% owned by the French group and the closure of two blast furnaces and a steel mill in the country by 2018.

The French group also announced the Chinese company’s takeover of Tianda Oil Pipe (TOP), based in Hong Kong and in which it already owned 19.46% stake in now becoming a majority amounting to 70.07%, amounting to $ 175 million.

– Capital increase –

Alongside these industrial actions, the group will proceed to a capital increase of one billion euros through the issue of redeemable bonds in shares (NRS) and the new shares, which will be performed with half of the State, via the investment bank Bpifrance, and to the Japanese Nissan Steel (NSSMC).

The other half of this fundraiser will be conducted among the market for just under 500 million euros.

As part of the capital increase, Vallourec announces that Bpifrance NSSMC and its partner will each have their participation to 15% of the capital of the group after dilution for a total covering half billion euros expected fundraising.

The rise of our two strategic partners, both at 15% with a commitment not to go beyond, has the merit of stabilizing our shareholder . This confirms also the state in its desire to support a group that embodies an important part of the technological history of the French oil industry , “said Philippe Crouzet.

All of these measures will be presented to shareholders at an extraordinary general meeting scheduled April 6.

In the wake of these ads, the Vallourec Supervisory Board has reappointed the members of the Group Executive Board, including the Chairman, Mr. Crouzet, Director General Jean-Pierre Michel, and CFO Olivier Mallet, “ for a further period of four years, their current term expiring March 15, 2016 “.

The sharp drop in oil prices has pushed oil and gas companies to significantly reduce their investments in drilling, the turnover of Vallourec depends more than two-thirds.

The group had announced on January 14 that he was “ re ” its proposed reorganization of its European units, which was originally to be validated in late January due a situation increasingly degraded.

The price of Vallourec shares was suspended Friday afternoon to 4.05 euros, and the listing had not resumed Monday at the opening.

Over the past year, the Vallourec shares lost nearly 80% of its value, the Group’s market capitalization fell to 549 million euros.

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