Welspun calls off JV with TMK

The Indian pipe producer Welspun Gujarat Stahl Rohren Ltd. (Welspun) has disclosed to SteelOrbis that it has called off its proposal to establish a joint venture company with the Russian pipe maker TMK. Due to disagreement on the terms and conditions of the JV, Welspun has decided to withdraw from the MoU signed with TMK last October. A spokesperson from Welspun, commenting on the company's decision to SteelOrbis, stated, ’I think this should have a positive impact as this was a big investment and the risk could have been higher than returns. We were not at all comfortable with the findings of due diligence. Thus we could preserve a lot of shareholders wealth by calling off this JV'. Since the Indian company has not proceeded with any investments in Russia yet, it will not carry any liability in relation to the JV.