Foundation Laying Ceremony for Construction of OCTG Pipe Threading Facilities and Stockyard

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President: Kuniharu Nakamura) hereby announces that VAM® BRN Sdn Bhd has commenced construction of its OCTG pipe threading facility. VAM® BRN is a joint venture set up in Brunei by Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) and Vallourec Tubes S.A.S. to provide the service in the region. In conjunction with this, SC Tubular Solutions (B) Sdn Bhd (“SCTSB”), a Sumitomo Corporation Group company that will undertake supply chain management for this business, has started building stockyard.

On October 24, 2015, the groundbreaking ceremony for the two construction projects took place at both of the planned sites, which are located within the Salambigar Industrial Park. The event was attended by a rough total of 80 persons from related organizations, including The Honorable Pehin Dato Mohammad Yasmin Umar, Minister of Energy and Industry of Brunei, and national government officials, the Japanese ambassador, and representatives of investor companies.

This project has been developed under the contract signed in 2014 by Brunei Shell Petroleum Co Sdn (“BSP”), Sumitomo Corporation and NSSMC in response to a request from BSP and the government of Brunei for local supply of seamless OCTG pipes.

Commercial operation of the project is scheduled to be started in October 2016. We are seeking to create a one-stop-shop solution that can provide stable supply and shorter lead times (from order placement to delivery) and enable inventory reduction, among other benefits, and are also hoping to increase local employment. Through promoting this project, we will contribute to the development of the country.