ChTPZ to receive Ruble 5 billion state guarantee

One of the largest Russian pipe producers, ChTPZ Group, has announced that the Russian government has agreed to provide a state guarantee of up to Ruble 5 billion (about $164.7 million) for a Ruble 10 billion (approx. $329.3 million) credit line that Russia's largest non-state owned bank Gazprombank will give to its subsidiary Chelyabinsk Tube Rolling Plant (ChTPZ).
 
Accordingly, the credit line will be used for finishing ChTPZ's investment project for the construction of a new shop for the production of single-seam large diameter (LD) pipes, and also for financing the company's main production activities.
 
The construction of ChTPZ's new workshop for the production of LD pipes is directed towards the satisfaction of quality requirements for pipe production due to the toughening of conditions for oil and gas output and transportation. In addition, the new shop is aimed at satisfying the demand for high quality LD pipes from Russia and the CIS for the construction of trunk oil and gas pipelines.
 
The commissioning of ChTPZ's new pipe shop with an annual capacity of 600,000 mt is scheduled for 2010.The total cost of the project amounts to €500 million.