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.