TMK Acquires 87% Stake in ChTPZ to Create Russian Pipe Giant

Russian steel pipe maker PJSC TMK and PJSC ChTPZ (ChelPipe Group), Metal-Expo exhibitors, controlling shareholder Mr Andrei Komarov announced the conclusion of a transaction for the acquisition.

Russian steel pipe maker PJSC TMK and PJSC ChTPZ controlling shareholder Mr Andrei Komarov announced the conclusion of a transaction for the acquisition of 86.54% of shares in PJSC ChTPZ by PJSC TMK. All necessary approvals, including those from the FAS Russia, have been received. ChTPZ Group unites enterprises and companies of ferrous metallurgy Chelyabinsk Pipe-Rolling Plant, Pervouralsk Novotrubny Plant, ChTPZ Warehouse Complex, which sells the Group's pipe products in the regions, META scrap metal procurement and processing company; enterprises for the production of trunk equipment SOT, ETERNO, MSA in Czech Republic; the oilfield service business is represented by the Rimera company. With a sufficient number of capacities for the production of welded and seamless pipes of a wide range, a developed system of warehouses, the ChTPZ Group positions itself as an effective universal player in the pipe market of Russia and the CIS countries, specializing in the manufacture of pipe products for all major sectors of the economy.

PJSC TMK Chairman Mr Dmitry Pumpyansky said “Today's event is another step in the implementation of TMK's long-term strategy aimed at expanding the production base and sales markets, diversifying the product portfolio and developing the scientific, technical and innovative component of the business. ChelPipe is a recognized, strong player in the Russian pipe market with modern production facilities, a highly professional team, its own scientific developments, and established sales channels. Combining the listed advantages with all TMK competencies will give a powerful synergistic effect, ensure the energy security of Russia and solve strategic problems of import substitution, and will also allow TMK to completely cover the needs of domestic fuel and energy companies in special types of pipes and remove in this part the technological dependence of complex oil and gas projects on foreign developments and suppliers.”

Chairman of the Board of Directors of PJSC ChTPZ Mr Andrey Komarov said “I am deeply satisfied with the deal, I am sure that the consolidation with TMK, a successful global company that has the highest reputation and builds its business on the principles of sustainable development and social responsibility, will allow ChelPipe and the company's team to continue to move forward progressively, making a significant contribution to the social economic development of the country, including the best in the country teaching methodology under the program The Future of White Metallurgy, but most importantly, the company has formed a professional team capable of solving the most ambitious tasks.”