The Russian steelmaker Novolipetsk Steel (
NLMK) has announced that it has signed an agreement for the supply of transformer steel with
China's largest transformer producer, Tebian Electric Apparatus Stock Co., Ltd. (TBEA).
According to the agreement,
NLMK will supply 94,000 metric tons of transformer steel (instead of the previously intended 100,000) during the 2007-2010 period for a total of $460 million.
The parties nominated the Russian
trading company RUSSTEEL to act as an agent for shipments.
The new supply agreement has a strategic value for both companies. On the one hand,
NLMK will increase its exports of high-value added products to the fast growing Chinese market. On the other, TBEA will develop a comparative advantage in both domestic and global markets for electrical products.