NKK, Siderca and Tamsa Agree on Seamless Pipe Sales Tie-up

NKK has concluded a seamless pipe sales tie-up agreement with Siderca S.A. of Argentina and Tamsa (Tubos de Acero de Mexico S.A.) of Mexico centered around the licensing of NKK-developed premium joints (product name: NK 3SB) for seamless pipes used in oil drilling.

Recent vigorous activity in oil, gas and other energy development projects around the globe has created substantial demand for high-quality oil country tubular goods (OCTGs) with even higher added values. This trend is expected to continue steadily. In these situations, major oil and gas companies throughout the world have tended to procure OCTGs from a single supply source to reduce procurement costs and to avoid risks from manufacturers. To respond to such customer policies, pipe manufacturers are increasingly required to provide high-quality products on a stable long-term basis.

The NKK-Siderca-Tamsa tie-up is aimed at better serving the customer need for procure-ment from a single supplier by fully utilizing the respective competitive strengths in which the three companies excel and by offering a packaged supply. NKK will largely manufacture high-grade alloy steel pipes and joints, while Siderca and Tamsa will focus on supplying ordinary carbon steel items so that the three companies can complement each other effectively within their product ranges.

Through the licensing of its premium joint technologies to Siderca and Tamsa, which have a significant position in the international market, NKK also intends to expand the application of NK 3SB premium joints, which have gained a good reputation among users for air-tightness, reliability, and ease of installation.

Siderca, based in Buenos Aires, and Tamsa, based in Veracruz, are both integrated electric-furnace-based seamless pipe manufacturers under the control of Argentina's Techint Group. Siderca has an annual output of 750,000 tons, with annual sales of US$680 million in fiscal 1996, while Tamsa has an annual production of 550,000 tons, with annual sales of US$400 million in fiscal 1996.