Tenaris- the global manufacturer and supplier of steel pipes and related services announced that it has decided to enter into a joint venture project with PAO Severstal in building a new welded steel pipe plant. The plant, to be located in the Surgut area, West Siberia, Russian Federation, will mainly produce OCTG products. The commencement of the project is subject to regulatory approvals and customary conditions.
The joint venture plans to make an investment of nearly $240 million in building the plant. The construction is expected to be completed within two years. Upon completion, the plant will have a production capacity of approximately 30,000 tons per annum. The new plant will serve the growing market for welded OCTG pipes not only in Russia but also in neighboring countries.
According to Paolo Rocca, Chairman and CEO of Tenaris, the combination of respective strengths and commitment to industrial excellence will help in offering high quality, more efficient and cost-effective solutions to cater to the Russian and CIS oil and gas industry. Meantime, Alexey Mordashov, Chairman of the Board of Directors of Severstal expressed great pleasure in joining hands with Tenaris to offer best-in-class OCTG products to the regional oil and gas industry.
Tenaris will have 49% stake in the joint venture company, whereas the remaining 51% stake will be owned by Severstal.
