BOULOGNE-BILLANCOURT, France - As Vallourec Star prepares to cut as many 80 jobs next month in the Valley, the parent company of the tubular product manufacturer expects the depressed gas and oil industry to affect business for the remainder of 2015.

In releasing second quarter and first half financial results on Thursday, Philippe Crouzet, Chairman of Vallourec's Management Board, said that the severe downturn in the Oil & Gas markets persists.

“The resulting decline in drilling activity since the beginning of the year, particularly in North America and the EAMEA (Europe, Africa, Middle East, Asia) region, led to a sharp fall in our sales and increased pressure on prices in the first semester. As a result, our mills have been operating well below capacity, leading to inefficiencies typically associated with low load,” said Crouzet.

Vallourec says volumes sold in the United States were down, reflecting a 53% drop in the number of active drilling rigs during the period. Prices decreased in second quarter as well.

Oil & Gas, which represents nearly 70% of Vallourec's revenue, was down 25% from a year ago.

A statement released by Vallourec says the company has implemented what it characterizes as “drastic flexibility measures to adapt our mills to the low load.”

Vallourec Star announced in early July that its Youngstown workforce would be reduced by 60-80 jobs by early August because low oil prices continued to weaken oil and gas demand, causing high inventories, and reduced sales compared to 2014.

The Youngstown plant had already undergone a three week shutdown in February. At the time, the company offered a voluntary six month layoff to interested employees.

The Youngstown cuts are part of Vallourec’s plan to reduce fixed cost by, among other measures, cutting 2,000 employees worldwide.