The Russian steel producer Severstal and Russia's largest oil and gas pipe producer TMK have signed an agreement on cooperation in 2011, defining the basic parameters of cooperation between the companies. In particular, the agreement has set some conditions regarding delivery of Severstal's steel coils and plates for manufacturing of oil and gas pipes at TMK.
In 2011, in order to improve the quality of steel products supplied to TMK, Severstal plans to complete several investment projects at Severstal Cherepovets, its main steel producing facility in Russia. Among the main projects are the installation of an automated surface quality control system at flat rolling shop No. 2, and the development of a secondary cooling system for steel strip grades, implemented in the converter shop.
In 2010, Severstal more than tripled its supplies on year-on-year basis to TMK, delivering more than 40,000 mt of steel plate of K65 grade (high strength) for the production of pipes supplied to the Russian state-run gas monopoly Gazprom for the construction of the Bovanenkovo-Ukhta gas trunkline system.