TMK to set up JV with Welspun

The leading Russian steel pipe producer TMK has announced that its Volzhsky Pipe Plant (VTZ) and the largest Indian producer of high-end large diameter pipes, Welspun Gujarat Stahl Rohren (Weslpun), have signed a memorandum of understanding on the setting up of a new joint venture (JV) in the city of Volzhsky. The new joint venture will specialize in the production of double submerged arc welded (DSAW) longitudinal pipes of 20″ (508mm) to 56″ (1420mm) diameter with one seam, up to 40 millimeter wall thickness, and up to 18 meters in length. The joint venture will also produce special welded pipes. The new plant with an annual capacity of 1.2 million metric tons of large-diameter pipe will be built in the Russian city of Volzhsky. A 40 percent stake in the venture will be held by Welspun, while the remaining 60 percent will belong to TMK. As part of the agreement, TMK will provide infrastructure for the new plant while Welspun said it will invest about $150million on machinery in the venture. TMK's General Director Konstantin Seemrikov stated, ’The TMK-Welspun joint venture enables the company to expand its participation in pipeline projects not only in Russia and the CIS but beyond. The high quality of product offering coupled with unique production facilities that enable TMK to execute large-scale orders will contribute to the development of the oil and gas industry as well as strengthening of energy security of Russia”. On the other hand, Welspun's Vice Chairman and Managing Director commented, ’This partnership will leverage our high-quality, submerged arc weld production capabilities with TMK's strong regional presence and extensive sales and marketing expertise, allowing us to provide a wide array of products for onshore and offshore line pipe requirements to our customers'. Production at the plant is scheduled to start in the fourth quarter of 2007.