Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced that it has acquired a 100 percent interest in domestic steel scrap company ChermetServis-Snabzhenie. The value of the deal totals about RUB 2.73 billion ($41.4 million). This expenditure will not increase TMK's capital expenditure in 2015, which is expected to decline by over 30 percent compared to 2014 with the current deal value already factored in.
Founded in 2000, ChermetServis-Snabzhenie (ChS-Snabzhenie) is one of the leaders in the Russian steel scrap market, showing a sustainable growth of scrap sales and a stable financial performance. ChS-Snabzhenie not only collects, processes and sells ferrous scrap, but also provides comprehensive procurement services to steel plants.