Zagorsky Pipe Works and the country’s second largest bank VTB have signed an agreement to build a 35-billion ruble seamless pipelines plant, the bank said.
“In accordance with the agreements of the parties, VTB plans to act as a financial investor of a project for construction of a new industrial cluster that will produce seamless pipes in Russia’s Central Federal District. The project will be implemented by Zagorsky Pipe Works, investment in the project will reach 35 billion rubles,” the bank said.
Zagorsky Pipe Works CEO Denis Safin said that the new plant’s annual production capacity should amount to 450,000–500,000 tons, and the new plant should reach it in 2022.
“All companies of the oil and gas industry will be our consumers, the top 20 or 30 of our leading oil and gas companies that produce and transport oil and gas. The amount of pipes that we want to produce is about 450,000–500,000 tons,” he said.
He also said that the plant would open a loan with VTB Bank to finance it. The plant will be located close to Zagorsky Pipe Works, he said.
The current capacity of Zagorsky Pipe Works stands at 500,000 tons of large-diameter pipes per year. (Prime/Ukrainian metal)