UPDATE 1-French oil tubing maker Vallourec to raise capital, cut jobs

lunes 1 de febrero de 2016 05:46 GYT

* Plans convertible bond issue and rights issue

* Cancels dividend

* To rationalise production in Europe and Brazil

* Shares to resume trading at 1100 GMT (Adds cancelling of dividend, management board given new 4-year term)

By Gus Trompiz and Benjamin Mallet

PARIS, Feb 1 (Reuters) - Loss-making French oil industry tubing maker Vallourec plans to raise 1 billion euros ($1.1 billion) in new capital and cut its production capacity in Europe by half, it announced on Monday, in an overhaul backed by key shareholders.

The restructuring announced on Monday includes the closure of two rolling mills in France, one threading line in Germany and a heat treatment line in Scotland, leading to the loss of about 1,000 jobs on top of previously announced cuts.

Vallourec, whose steel pipes are used chiefly in the oil and gas industry, has been hit hard by plunging oil prices that have led customers to rein in investments.

"Our plan significantly adjusts our industrial footprint in Europe to address overcapacity and focus on highly specialised activities in France and Germany," Vallourec head Philippe Crouzet said, adding that it would not pay a dividend on 2015 results.   Continuación...