PARIS - Vallourec, a major global supplier of specialized steel tubes for the energy industry with U.S. headquarters in Houston and a manufacturing facility in Youngstown, announced strong third-quarter profits Thursday, crediting higher prices for its products and solid demand from U.S. customers.

The Paris-based company reported that its main tube business saw a sharp jump in earnings.

CEO Philippe Guillemot anticipates a drop in imported steel tubes—which currently make up about 40% of the U.S. supply—as the market responds to higher steel tariffs. This is expected to grow Vallourec’s U.S. market share.

 

Guillemot said the company’s manufacturing base and high-quality products are proving valuable in the United States. He noted that the company has recently received robust orders from the U.S. market, which reflects stable drilling activity by customers and a growing share of the market for Vallourec.

The parent company’s total key operating profit for the quarter reached approximately $243.6 million. The earnings increase was primarily driven by the company’s ability to charge more for its products, along with a slight increase in the number of tubes sold.

The average earnings for every ton of tubes the company sold increased more than 25% compared to the prior three months.

 

 

The company's positive financial news coincides with a $48 million expansion breaking ground at its Youngstown facility this week. The project will create 40 new full-time jobs and boost the domestic energy supply chain.

That expansion project will allow the plant to produce more premium connections used in long-reach oil and gas wells.

Vallourec has invested over $1.5 billion in the United States over the last 15 years. The Youngstown facility serves as its main North American production site and manufactures seamless tubes using recycled scrap metal.