Energy to make everything possible
ACTIVITY REPORT 2016/2017
"Making the future possible…
It is a message of confidence in the future that we send to all our shareholders worldwide.”
Philippe Crouzet,
Chairman of the Vallourec Management Board
READ THE INTERVIEW
Energy to make everything possible
ACTIVITY REPORT 2016/2017
"With full confidence.
Vallourec announced it and Vallourec
did it."
Vivienne Cox,
Chairman of the Supervisory Board
READ THE MESSAGE
7 keys to the future

The first
signs of recovery

Over 800
drilling rigs operating in the United States at the end of March 2017, double the number from March 2016
For more information

After three years struggling with the oil crisis, one of the most severe in history according to experts, the oil and gas market is showing its first strong signs of regaining some balance.

The rebound in U.S. shale oil production, signing of the OPEC Agreement at the end of November 2016 to limit production and allow prices to climb, natural depletion which has reduced output from existing fields and an oil demand slated to rise by roughly 0.4% a year out to 2040 according to the IEA: all these indicators are encouraging oil sector players to ramp up their investments in exploration and production as quickly as possible.

 

Vallourec is ideally positioned to accompany this recovery. Our regional industrial bases place teams closer to customers and their fields. Our ability to innovate, painstakingly preserved during the crisis period, provides the resources to continually extend our collaboration. A coherent industrial and commercial strategy at the global scale has broadened our perspective.

"Opening new production channels, optimizing the distribution of orders among the world's regions."
Read the interview
Philippe Carlier,
Senior Vice President
Technology & Industry
"Push the limits of the possible to ensure readiness for the day's complex project initiatives."
Read the interview
Didier Hornet,
Senior Vice President
Development & Innovation

Strategic
geographic
positions

4 major regions presenting equivalent production capacities
NORTH AMERICA
SOUTH AMERICA
CHINA
EUROPE
Our mission: serve the US market
Our mission: serve the Brazilian market, become a competitive export hub
Our mission: become the Group's premier hub
Our mission: serve the Middle East and Asian markets, develop an ultra-competitive export hub
NORTH AMERICA Our mission: serve the US market
EUROPE Our mission: become the Group's premier hub
SOUTH AMERICA Our mission: serve the Brazilian market, become a competitive export hub
CHINA Our mission: serve the Middle East and Asian markets, develop an ultra-competitive export hub
For more information
In the United States, Vallourec is contributing to the recovery
"Our priority is to effectively manage this rebound, which has been as sudden as the decline in early 2015."
For more information
Nicolas de Coignac,
Senior Vice President
North America
One steel mill up and running in no time in Brazil
"We're gradually transferring steel production from Barreiro Belo Horizonte to the modern Jeceaba plant."
For more information
Alexandre Lyra,
Senior Vice President
South America
Acquisition of the Chinese manufacturer Tianda
"This highly competitive production hub will enable us to conquer or win back markets inaccessible to European mills, where competitors, especially the Chinese and Russians, have emerged."
For more information
Edouard Guinotte,
Senior Vice President
Middle East and Asia
In Europe, our source of highest-end market penetration
"Our rolling capacities have been concentrated at the German sites of Mülheim and Rath, making it possible to cover all customer needs in terms of dimensional ranges and volume. French sites concentrate on tube finishing and the most sophisticated products in our portfolio."
For more information
Hubert Paris,
Senior Vice President
Europe and Africa

Newfound competitiveness
in Vallourec's
market offering

900 initiatives
from a mobilized workforce
across the world, seeking to make
the impossible possible

Cost, cash, business strategy, customer service and innovation.

The Valens plan, designed and implemented to structurally

optimize the Group’s cost base, is a success in terms

of both results and mobilization.

Reporting from 4 sites, in the United States, Brazil, France

and Germany.

900 initiatives
from a mobilized workforce
across the world, seeking to make
the impossible possible

Cost, cash, business strategy, customer service and innovation.

The Valens plan, designed and implemented to structurally

optimize the Group’s cost base, is a success in terms

of both results and mobilization.

Reporting from 4 sites, in the United States, Brazil, France

and Germany.

Houston, United States
900 initiatives
from a mobilized workforce
across the world, seeking to make
the impossible possible

Cost, cash, business strategy, customer service and innovation.

The Valens plan, designed and implemented to structurally

optimize the Group’s cost base, is a success in terms

of both results and mobilization.

Reporting from 4 sites, in the United States, Brazil, France

and Germany.

Belo , Brazil
900 initiatives
from a mobilized workforce
across the world, seeking to make
the impossible possible

Cost, cash, business strategy, customer service and innovation.

The Valens plan, designed and implemented to structurally

optimize the Group’s cost base, is a success in terms

of both results and mobilization.

Reporting from 4 sites, in the United States, Brazil, France

and Germany.

Aulnoye-Aymeries, France
900 initiatives
from a mobilized workforce
across the world, seeking to make
the impossible possible

Cost, cash, business strategy, customer service and innovation.

The Valens plan, designed and implemented to structurally

optimize the Group’s cost base, is a success in terms

of both results and mobilization.

Reporting from 4 sites, in the United States, Brazil, France

and Germany.

Rath, Germany

Dynamic
and customized
innovation

500 researchers
and technicians across the world 3 innovation emphases and first-time breakthrough innovations
For more information

Continuing development of high-tech products, reducing customers’ TCO

(total cost of ownership) and embracing new markets

and business models are Vallourec’s 3 priority innovation challenges.

"Offering value-added solutions to our customers that beat their expectations
— such is Vallourec's innovation roadmap."
Sylvie Dubois-Decool,
Head of Innovation

Tired of having to lubricate and clean threaded connections? The Cleanwell®Dry 2 factory-applied coating guarantees their perfect seal and protects them against galling and corrosion. Benefit: 10% savings on the value of each tube used.

Vallourec has delivered 1,500 tons of OCTG tubes in order to consolidate the two wells at the Holzkirchen geothermal power plant (Bavaria), both drilled to a depth of 5,000 m. Benefit: 10,000 tons/year of CO2 avoided!

The Netherlands, Abu Dhabi, Brazil, Indonesia, Africa and North America:
These Vallourec One Stop Shop hubs pack all the services associated with the project value chain, offering greater proximity to customer operations. Benefit: A decline in TCO.

The Cleverscan system, developed by the subsidiary Serimax, has revolutionized the welding of tubes featuring different diameters. An innovation successfully introduced in Texas, Kazakhstan and the North Sea. Benefit: Optimized pipeline selection, order and connection.

The commitment
to industrial
excellence

4.5/5
Vallourec's average rating
awarded by its main customers
for the quality of its services
For more information

In looking beyond the crisis and Vallourec’s transformation,

industrial excellence remains the company’s priority.

The full range of safety, quality, lean management and CSR indicators provide ample evidence.

Vallourec's spirit

Nearly 10,000
employees subscribed to the 9th employee shareholding plan
For more information

The feeling of belonging among Vallourec employees will always make a difference. Their commitment, both individually and collectively, plus their perseverance in pulling the company out of the crisis that ran rampant over the past two years has been truly remarkable. They revised their working methods in order to curb costs and demonstrated loads of creativity despite the drop in activity, reorganizations and personnel cuts happening in all corners of the world.

This deep-rooted transformation has been conducted in complete transparency relative to company staff through a respectful dialogue held with employee organizations. Every effort was made to promote each individual’s talents and expertise while preserving everyone’s trust. The success of the 9th employee shareholding plan proves this point: nearly 10,000 employees from 11 different countries enrolled.

Collaboration, boldness, confidence: Vallourec reasserted its core values at a time when the rebound began to take shape, ready and eager to seize the moment.

"We expanded the number of opportunities available to share strategy, dialogue, explain the rationale behind this transformation and how each one of us could contribute at his/her level. We're in the process of achieving success both with and thanks to the entire workforce, and this creates even stronger bonds than before."
François Curie,
Vice President, Human Resources
"We expanded the number of opportunities available to share strategy, dialogue, explain the rationale behind this transformation and how each one of us could contribute at his/her level. We're in the process of achieving success both with and thanks to the entire workforce, and this creates even stronger bonds than before."
François Curie,
Vice President, Human Resources

March 8th 2017 is International Women’s Day and the day chosen to launch Women@Vallourec.

This women’s network is asking all employees to reflect upon the role of women in the Group and moreover to bring about change.

"Promoting gender diversity is an act of leadership. With Women@Vallourec, we're committed to a truly dynamic collective progress."
Stéphanie Fougou,
Vallourec General Secretary and President of Women@Vallourec
"Promoting gender diversity is an act of leadership. With Women@Vallourec, we're committed to a truly dynamic collective progress."
Stéphanie Fougou,
Vallourec General Secretary and President of Women@Vallourec

Making the impossible
possible is what we do
day in day out

1.2 billion tons
of tubes shipped the world over, helping accomplish our customers' most complex projects and realize their wildest dreams
For more information
Opening the field of offshore possibilities
Vallourec manufactures thin tubes to transport fluids from the surface station to equipment installed on the ocean floor. In 2016, the Glenlivet gas field north of Scotland was the site of the first full-scale test: 132 km of assembled tubes and the set-up worked just fine!
What confidence can make possible
The Indian electric utility National Thermal Power Corporation has ambition: it projects installing 128 GW by 2032, basically tripling current capacity. Vallourec was selected to equip its first ultra-critical power plant. The company's reputation for tubes no doubt exerted an impact, and its accompaniment throughout the project duration proved to be the difference-maker.
The quintessential impossible project
Total's Egina project, located 130 km off the Nigerian coast at a depth of 1,750 m, boasts the world's largest FPSO vessel: 330 m long, 61 m wide and 34 m tall, of a size sufficient to produce 200,000 barrels a day and store 2.3 million more. Vallourec supplies over 250 different parts for the ship along with: 24,000 tons of underwater pipes, fine-tuned project management skills, and a maximum amount of local content (training, maintenance and assistance).
Rewriting History
At the foot of the Giza Pyramids stands the impressive Great Egyptian Museum. Some 1,340 tons of MSH structural hollow sections support this architecturally flamboyant edifice. Highly-skilled handling of the sophisticated logistics and Vallourec teams' guidance from start to finish were instrumental.
Cutting to the chase
On a 500,000-m2 footprint, the "Qatar Mall" will encompass an amusement park, a luxury residential complex and the Al Rayyan Stadium, dedicated to hosting the 2022 Football World Cup. Vallourec is responsible for coordinating the extraordinary order of 475 tons of profiles sourced from various vendors, along with the fail-safe delivery of the entire quantity.
Wrapping your arms around New York
At 190 m above ground, such will soon be possible with the New York Wheel, the world's largest panoramic Ferris wheel. Vallourec is supplying the structural support tubes, manufactured using FineXcell®, an exclusive premium steel grade of a quality commensurate with the experience.
Redrawing the skyline
In the heart of Paris, Vallourec's very fashionable tubes support the Canopée des Halles shopping center at a height 15 m above ground. This gigantic sheet undulating over the Forum des Halles complex connects "the city down below with that up above" according to the project's architects and sets a new architectural tone for the Greater Paris region.
Challenging the sun
Eight giant parasols will protect pilgrims making their way to Mecca. The ribs bear a sizable proportion of the weight, i.e. some 600 tons per parasol, while spanning 53 m, roughly half a football field. They were built using fine grain steel tubes, another of Vallourec's signature designs.
We make the impossible possible
"We all need a positive boost, our teams as well as our customers."
Philippe Crouzet, Chairman of the Vallourec Management Board

Vallourec has decided to take charge and spread its enthusiasm throughout the sector, by means of a communication campaign demonstrating its capacity to surpass the boundaries of the possible and displaying its confidence in the future.
Photo credits: T. Fernandes - C. Guibbaud/CAPA Pictures - P. Dureuil -Wikimedia Commons - PIUS UTOMI EKPEI / AFP - Heneghan Peng Architects - © New York Wheel 2015 - Liebherr -Ansgar van Treeck - Shutterstock - Narmada Gharat/Dreamstime.com - Getty Images - Vallourec, DR. Videos: CAPA Enterprises.