UPDATE 1-Sumitomo Metal, Sumitomo to up cross-shareholding

(Adds Sumitomo's investment and details)

TOKYO, Jan 31 (Reuters) - Sumitomo Metal Industries Ltd (5405.T) said on Thursday it would issue 49.6 billion yen ($466 million) of its shares, or 2 percent of its outstanding stock, to Sumitomo Corp (8053.T).

Sumitomo Metal said it will also buy 15 billion yen of Sumitomo Corp shares to strengthen their ties.

Sumitomo Corp's stake in Sumitomo Metal will rise to 9.5 percent from 7.5 percent.

The two also said Sumitomo Corp will invest 10 billion yen in a seamless pipe producing joint venture between Sumitomo Metal and France's Vallourec (VLLP.PA).

As a result, Sumitomo will have about a 5 percent stake in the venture, with Sumitomo Metal holding 39 percent and Vallourec 56 percent.

As of 0408 GMT, shares of Sumitomo Metal were up 0.6 percent at 513 yen and Sumitomo Corp rose 1.5 percent to 1,441 yen. ($1=106.36 Yen) (Reporting by Taiga Uranaka)