One of the leading Russian pipe producers OAO TMK (TMK) has announced that it has reached an agreement to acquire 100 percent of share capital in Russia-based pipe coating producer OOO Truboplast (Truboplast). The consolidation is expected to be completed by the end of 2007; however, the cost of the buyout has not been disclosed yet.
Truboplast is one of Russia's largest producers of protective coatings for steel pipes used in the oil and gas industry and its products are used by the major Russian and international oil and gas companies.
Commenting on the acquisition, TMK said in a statement, "The acquisition of Truboplast will give TMK the largest pipe coating capacity in Russia, further strengthening its position in the oil and gas pipe market and increasing its share of high value-added premium products".