ChTPZ Group, one of the largest Russian pipe producers, and Ural Steel, the steel producing subsidiary of Russian iron ore and steel producer Metalloinvest Holding (Metalloinvest), have founded a joint venture called Ural Pipe Consortium, which is a further development of the strategic partnership between the companies.
The main aims of Ural Pipe Consortium are to increase the quality of ChTPZ's pipe products and of Ural Steel's steel products, and to coordinate their promotion in the domestic and foreign markets through the implementation of strategic infrastructure projects. Meanwhile, the priority of the Ural Pipe Consortium project will be to ensure efficient organization of product deliveries for Gazprom's Sakhalin-Khabarovsk-Vladivostok gas pipeline project.
The creation of the consortium will allow the producers to offer Gazprom new types of products, the manufacture of which will be possible due to the large-scale reconstruction and modernization projects implemented by the producers in question.
Meanwhile, the consortium will enable ChTPZ to stabilize its purchase of steel products and to provide a high level of performance. As SteelOrbis previously reported, starting in Q3-4 this year and continuing for 12-18 months, ChTPZ is to deliver about 200,000-300,000 mt of large diameter pipes for Gazprom's Sakhalin-Khabarovsk-Vladivostok gas pipeline project, while the strips for ChTPZ's pipe production will be delivered by Ural Steel.