Company Case: Vallourec s Commitment to Houston. Douglas A. Polk, VP Industry Affairs Houston, May 4, 2015

Transcription

1 Company Case: Vallourec s Commitment to Houston Douglas A. Polk, VP Industry Affairs Houston, May 4, 2015

2 Vallourec, World leader in premium tubular solutions North America represents 30% over total sales of Bn 5.7 / 2.3 mmt of seamless pipe 2

3 An upgraded state-of-the-art production base 5 steel mills 14 pipe mills 38 finishing units Sales & services Forest & mine 23,000 employees 6 R&D centers Over 50 production sites in 20 countries 500 researchers *As of December 31,

4 3 Legs - Vallourec s long-term strategy More premium More local More competitive Consolidate our leadership on the high end / high margin products Boost innovation in products and services Continue to rebalance our assets portfolio closer to our customers Leverage local content opportunities Our continued area of focus Need to accelerate competitiveness improvements: Valens

5 Valllourec s North American footprint Creation of VAM PTS (VAM USA) Premium Threading Services 2 locations with 185 employees Acquisition of North Star Tubes (Vallourec Star) Integrated tube mill Acquisition of OMSCO (Vallourec Drilling USA) Drilling products Acquisition of Atlas Bradford, TCA, Tube-Alloy Premium connections, Heat treatment, Accessories New small-diameter rolling mill Rolling mill with heat treatment and threading 20 locations with 3,000 employees Steadily building a leadership position in North America through acquisitions and capital investments 5

6 Houston The epicenter of the NA oil patch Tri-state area: 64% of US rigs 81% of OCTG Inventory US Rigs account for 53% of Worldwide rig count, 2/3 of them in the Tri-States Sources: Baker Hughes Sept OCTG Situational Report Oct

7 Houston, The place to be High concentration of customer and suppliers Rich concentration of companies: 3,700 energy-related establishments, both upstream and downstream Sources: Greater Houston Partnership 7

8 Houston, The place to be Government Support Local, state and federal support State Incentives Texas Enterprise Fund Texas Emerging Technology Fund (ETF) Skills Development Fund Texas Back To Work Program State Sales Tax Refunds Texas Manufacturing Assistance Center Manufacturing Sales Tax Exemption Sales Tax Exemption On Utilities Pollution Control Property Tax Abatements Local Incentives Property Tax Abatement A and B Sales Tax Enterprise Zone Program Green Building Tax Abatement Freeport Exemption Industrial Revenue Bonds (IRB s) Goods-in-Transit Exemption Foreign Trade Zones (FTZS) Employer Tax Credits Economic Development Act City of Houston Brownfield Redevelopment Program A business friendly environment with a stable tax regime 8

9 Houston, The Place to be Access to advocacy groups Get involved with your Industry peers! 9

10 Houston, The Place to be Educated workforce Large Adaptive, diverse, educated workforce More than 169,000 jobs within Greater Houston s Oil & Gas Production and Transportation Cluster. Education centers, universities and technical schools 14 major institutions of higher learning More than 60 degree-granting colleges, universities and technical schools ~100 trade, vocational and business schools Just under 30% of the Houston population over the age of 25 holds a bachelor's degree or higher. Source: GHP April 2015 visithoustontexas.com 10

11 Houston, The Place to be Transportation Network Houston Port Ranked #1 US port in foreign tonnage in 2014 Largest Gulf Coast container port, handling 67% of US Gulf Coast container traffic in 2014 Major freeway system East/West Interstate 10 North/South Interstate 45 Access to offshore activity Railway Port Terminal Railway Maintains 154 miles of track and 20 bridges Service to all 48 states as well as Canada and Mexico. Sources: Port of Houston Authority 11

12 Vallourec Houston footprint 4 1. Vallourec USA Corp VAM USA Serimax 5. Vallourec Star 3. Vallourec Tube Alloy A total of 6 subsidiaries and close to 1,200 coworkers 6. Vallourec Drilling *As of December 31,

13 New to Houston? Talk to your customers Contact Greater Houston Partnership Talk to your peers in the industry through advocacy groups Talk to your elected representatives for the area Be cautious of traffic patterns Be mindful of your most important resource: people 13

14 Thank you!