Russia’s PAO Severstal to join Tenaris in $240 mln welded pipe plant deal

Luxembourgish steel pipes and related services provider Tenaris SA. plans to form a joint venture (JV) with Russian steel and mining company PAO Severstal (PS) to build a welded pipe plant in the Surgut area, West Siberia, Russia.

The plant, which is estimated to cost $240 million, will produce welded oil country tubular goods products in Russia and neighbouring countries with an annual production capacity of 300,000 tons.

Tenaris, part of Argentine engineering to construction company Techint, will own a 49 percent interest in the joint venture company, with Severstal holding the remaining 51 percent.

Tenaris said that the plant will have a two year construction period and subjected to regulatory approvals and other customary conditions.