In July 1997, LTV acquired the Varco-Pruden Buildings division of United Dominion Industries. VP Buildings, Inc. is one of the largest manufacturers of metal building systems in the United States.

VP Buildings engineers and manufactures pre-engineered, nonresidential, low-rise steel buildings for manufacturing, commercial, industrial, school and warehouse construction applications.

VP Buildings has nine manufacturing plants strategically located throughout the United States in Alabama, Arkansas, California, Missouri, North Carolina, Ohio, Pennsylvania, Texas and Wisconsin. Its products are marketed by approximately 1,000 builders and distributors in the United States and Canada.

Demand for pre-engineered steel buildings is at an all-time high. In the United States, metal building systems sales and unit growth are higher than the general economy, and future demand is expected to continue growing, limited only by current capacity.

LTV's specialized steel and manufacturing research capabilities, Customer Technical Center and knowledge of value-added steel will help provide VP Buildings with capabilities beyond those of its competition.

VP International
Varco Pruden International, Inc., a subsidiary of VP Buildings, Inc., has world-wide affiliates including joint ventures or licensed product manufacturers in Argentina, Brazil, Chile, China, Egypt, Japan, Korea, Mexico and Spain. Most recently, Varco Pruden International has entered into a joint venture agreement with IMSA Acero, SA, one of Mexico's largest steel processors. IMSA Acero is a division of the $1.5 billion Grupo IMSA de CV, a diversified industrial group.

VP Buildings will invest up to $9 million to acquire a 49% interest in IMSA-Varco Pruden, SA de CV, a new company that will build a manufacturing facility in Monterrey, Mexico. IMSA Acero will have a 51% interest in the venture. The new facility will have an annual production capacity of 35,000 tons, or the equivalent of 800 to 1,000 buildings.

Varco Pruden Chile Limitada, a subsidiary of VP Buildings, Inc., has entered into a joint venture and technology sharing agreement with Empresas IPAC, SA of Santiago, Chile, an established Chilean manufacturer of steel roll formed panels and structural products. The joint venture company, named IPAC-Varco Pruden, SA, will produce a complete product line locally, eliminating the need to import panels or frames from other locations. VP Buildings will invest $8 million for a 49% interest in the new company. IPAC will hold a 51% interest.

Demand for pre-engineered metal buildings is growing throughout Latin America. The new partnerships will complement VP's existing joint ventures, and contribute to LTV's increasing presence in metal fabrication and the global marketplace.