Germany-based steelmaker Salzgitter Group has announced that EUROPIPE, its 50/50 joint venture with AG der Dillinger Huttenwerke, has become the main supplier for the first offshore strand of the South Stream Pipeline. EUROPIPE will supply 450,000 mt of steel pipes for the pipeline project.
This major order will secure satisfactory basic capacity utilization for the next 12 months at EUROPIPE from the second quarter onward. The feedstock will be provided in the form of high-grade plate by the two shareholding companies.
The South Stream Pipeline system will connect Russia's gas fields with central and
southeast Europe. The pipeline runs through the Black Sea and is scheduled to become operational at the end of 2015. The construction of four offshore strands has been planned.