Mr. Victor Rashnikov, president of Russian steelmaker Magnitogorsk Iron and Steel Works (MMK), and Mr. Alexander Ananenkov, deputy chairman of Gazprom's management board, have signed a cooperation agreement between their companies for the period up to 2015.
Under the terms of the agreement, the companies, on mutually beneficial bases, have pledged to develop cooperation aimed at securing steel supplies from MMK to Gazprom and to its associated companies which are involved in manufacturing steel pipes for Gazprom.
In addition, the parties have agreed to coordinate their actions with the leading Russian pipe producers in order to supply them with high quality steel products manufactured at MMK. Gazprom has also pledged to keep MMK informed about the latest requirements of the pipe producers.
On the other hand, MMK will commission production at its new continuous caster and at its 5,000 mm plate mill in order to supply material for the manufacture of large diameter pipes to be used by Gazprom in its new projects.
In addition, by the end of 2007, MMK will update its 2,000 mm hot strip mill and install required technology for the production of pipes from coils with thickness of up to 18.7 mm and strength of up to X70 in order to meet Gazprom's potential need in such products.
The agreement also allows the companies to conclude separate supply contacts based on the competitive parameters of the products in term of their quality and price.