TPT September 2021

Business & market news

Severstal acquires 20 per cent stake in construction pipe plant in south of Russia

PAOSeverstal,averticallyintegratedsteel and mining company, has announced that it has received permission from the Federal Antimonopoly Service of Russia (FAS) to acquire a 20 per cent stake in LLC Production Association Nizhne- Volzhsky Pipe Plant (NVTZ), a large pipe enterprise located in Volzhsky in the south of Russia. NVTZ currently covers 60 per cent of the construction pipe market in the Southern Federal District. In April 2020, Nizhne-Volzhsky Pipe Plant combined the different capabilities of three manufacturers of small and medium diameter pipes in the Southern Federal District of Russia: TK Profile-Akras, PC DIA and VTPZ. Today the production site includes 17 pipe-electric welding mills with a total annual capacity of over 600 thousand tons of products. NVTZ steel

pipes are suitable for water and gas supply, construction of prefabricated buildings and greenhouses, building playgrounds, park areas and other urban infrastructure and furniture. The transaction strengthens Severstal’s position in the domestic market for small and medium diameter pipes, and significantly expands the Company’s export markets for pipes into the CIS countries. Previously, Severstal’s key markets were central and north-west Russia. The acquisition of a stake in NVTZ will enable the Company to establish a presence in the Southern Federal District, as well as start supplying small and medium-diameter g/c and x/c pipes to the Central Asian market. NVTZ already supplies products to CIS countries including Kazakhstan,

Azerbaijan, Kyrgyzstan, Uzbekistan and Armenia. Alexander Shevelev, CEO of Severstal, said: “The acquisition of a stake in the NVTZ Production Association is fully in line with Severstal’s strategy of finding reliable partners and expanding our product portfolio, while increasing the share of higher-margin products and providing a superior customer offer. This partnership will enable us to expand our range of small and medium diameter pipe products and complements the investment programme at the Cherepovets Steel Mill’s rolling mill, which has improved the quality of rolled metal. In addition, we will be able to access new sales markets supported by NVTZ’s well-established supply chains.” Severstal www.severstal.com

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TUBE PRODUCTS INTERNATIONAL September 2021

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