Zagorsk Pipe Plant, VTB to build 35 bln rbl seamless pipe plant

MOSCOW, Oct 3 (PRIME) -- Russia’s Zagorsk Pipe Plant and the country’s second largest bank VTB signed an agreement to build 35 billion ruble seamless pipelines plant, the bank said in a statement on Thursday.

“In accordance with the agreements of the sides, 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 Zagorsk Pipe Plant, investment in the project will reach 35 billion rubles,” the bank said.

Zagorsk Pipe Plan CEO Denis Safin said that the new plant’s annual production capacity should amount to 450,000–500,000 tonnes, 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 tonnes,” he said.

He also said that the plant will open a loan with VTB Bank to finance it. The plant will be located close to Zagorsk Pipe Plant, he said.

The current capacity of Zagorsk Pipe Plant stands at 500,000 tonnes of large-diameter pipes per year.

(65.4399 rubles – U.S. $1)

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