Media Center

04.10.2006

TMK and Welspun Gujarat Stahl Rohren to Set up Joint Venture

TMK, the leading Russian steel pipe company, has announced that Volzhsky Pipe Plant (VTZ), a member of TMK, and Welspun Gujarat Stahl Rohren (Weslpun), India’s largest manufacturer of high-end large-diameter pipes for oil and gas industry, have signed the MOU and agreed to set up a joint venture. A 60% stake in the joint venture will belong to VTZ and 40% will belong to Welspun.

The new capacities are intended for the production of double submerged arc welded (DSAW) longitudinal pipes with 20” (508mm) to 56” (1420 mm) diameter with one seam, up to 40 millimeters wall thickness and up to 18 meters in length and spiral welded pipes. On completion of the DSAW plant, the joint venture’s capacity in the production of large-diameter welded pipes is expected to be more than 1.2 million tons per annum.

The start-up of large-diameter longitudinal welded pipe production is scheduled for Q4 2007.

Large-diameter welded pipes are used in the construction of oil and gas trunk pipelines. Russia’s largest consumers of these products are Gazprom and Transneft. ТМК also sells 56” line pipes to Kazakhstan, Uzbekistan and other countries of CIS and Caspian region.

According to TMK’s General Director Konstantin Semerikov, “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”.

“We look forward to consolidating our global presence through the formation of this joint venture,” said B.K. Goenka, Welspun’s Vice Chairman and Managing Director. “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. We have already done most challenging projects like supplying pipes for the world’s deepest pipeline in the Gulf of Mexico and this JV will give us the opportunity to cater to the needs of the burgeoning oil and gas industry of Russia.