Russian MMK and TMK signs sheet supply agreement

Russian MMK and TMK signs sheet supply agreement

It is reported that major Russian pipe producer Pipe Metallurgical Company (TMK) and steelmaker Magnitogorsk Iron & Steel Works (MMK) have signed an agreement regarding 2.500 mm wide steel sheet supply for two years to be used in spiral welded pipe production. The reason why these two Russian companies decided to make a deal is that, Volzhsky Pipe (VTZ) which is a unit of TMK, currently supplies the semis for spiral welded pipe production from two mills in Ukraine as well as by imports from outside CIS and is not happy with the quality of materials. Thus, in order to improve and standardize the quality of semis, including the expansion of the range of semis supplied by MMK, companies decided to make an agreement, details of which are yet to be disclosed. According to reports, for extra-wide sheet supply, MMK's facilities may go through a reconstruction process or a new cast and rolling unit can be build at VTZ which is estimated to cost about $300 million.