Vallourec sells former German plant property
Vallourec has entered into an agreement to sell the majority of its Düsseldorf Rath property to CTP, Europe’s largest publicly-listed industrial property developer, Kallanish learns from the French pipemaker.
This will involve the sale of the approximately 900,000 square meter property for €155 million ($126.6m). The site was home to Vallourec’s primary tube production operations in Germany, which closed at the end of 2023 as part of the New Vallourec plan.
The transaction is expected to close around year-end, subject to customary closing conditions, including CTP’s receipt of the waiver of the city’s pre-emption right, the pipemaker notes.
“This transaction marks a major milestone for Vallourec, as we have now finalised the closures and sales of all of the major European assets targeted by the New Vallourec plan in less than three years,” says Vallourec chief executive Philippe Guillemot. “As a reminder, 80-100% of cash flows generated in the second half of 2024, including the proceeds from the sale of this facility, will be eligible for return to shareholders.”
Earlier, Vallourec announced it is divesting a logistics hub in Indonesia as part of its initiative to concentrate on its main operations (see Kallanish passim). The pipe manufacturer plans to divest its interests in PT CPPI and PT SCN, referred to as the Logistics Group, to CKB Logistics, a subsidiary of ABM Investama Tbk, for an estimated €20m.
Vallourec is also partnering with Advanced Supply Management Operations (Asmo), a joint venture between DHL and Saudi Aramco formed earlier this year, with a view to increasing its Middle East and North Africa market share.
Svetoslav Abrossimov Bulgaria
