Vallourec to invest US$ 607 million in Brazil this year
DCI - 03/06/2008
The French manufacturer of seamless steel pipes, Vallourec, announced its plans to reserve 750 million euros (nearly US$ 1.138 billion) for investments in 2008 yesterday. From this total, nearly 400 million euros (US$ 607.2 million) will be invested in the construction of a plant in Brazil this year, according to the company's CEO, Pierre Verluca. Last year, the company allocated 438 million euros for investments. In 2008, the volume allocated for Brazil will be part of joint-venture entered into by the group with the Japanese Steelworks Industry Sumitomo Metal Industries. Member of Vallourec's management board Jean-Pierre Michel also revealed that, this year, the company wants to reach one-third of the goal of cutting 200 million euros of costs a year, which should be achieved in 2010. Posco steel industry will increase the prices of its Series 300 stainless steel by 7% due to the high in costs of the nickel used in the production of the alloy. The Asian giant will also raise the prices of the hot laminated steel in 250 thousand wons (US$ 264) per ton, to 3.65 million wons (US$ 3.85 thousand), starting on the next 17th. Posco and its competitors are forcing an increase of prices to clients, such as car makers and building companies, in order to revitalize its growth, after the increase of the cost of the raw materials reduced their profits in the quarter ending in December. The prices of nickel went sharply up by 25% this year, pushed up by the expectation of growth of the demand, due to the strike of the nickel mine workers of Colombia, started on February 28.