MMK to meet ChTPZ’s steel plate needs in long-term cooperation deal

Monday, 26 July 2010 13:46:31 (GMT+2)

Russian pipe producer ChTPZ group and Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) have signed a cooperation agreement entitled ‘Mill 5000-Vysota 239' for the period of up to 2015, in order to ensure the Russian oil and gas industry with timely deliveries of high-quality pipes for the construction of new trunk oil and gas pipelines and the overhauling of existing ones.

The partnership will be based on meeting the steel plate needs of ChTPZ's new large diameter pipe electric-welding workshop named Vysota 239, commissioned on July 23 this year, with high-quality rolled steel produced at MMK's plate rolling mill 5000, which was commissioned in July 2009. In addition, the parties will develop programs of cooperation in research and technology, and in commercial and other spheres of interaction.

The companies have not disclosed the details of the supply deal; however, Reuters, citing ChTPZ's commercial director Yaroslav Zhdan, has reported that the agreement would see deliveries of up to 500,000 mt of rolled steel per year from MMK to CHTPZ. The deal will guarantee ChTPZ supplies at stable prices.

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