ChelPipe and Severstal Agree on Further Cooperation

ChelPipe Group (“ChelPipe” or “the Group”) and Severstal have held their 17th coordination committee meeting, at which they discussed working together at Severstal’s production facilities in Kolpino. The two sides announced the results of their work in the first nine months of 2014 and discussed ways of increasing the quality of rolled steel and potentially working together on oil and gas pipeline projects, notably the “Power of Siberia”. In 2014 to date, Severstal has already shipped to ChelPipe’s Vysota 239 mill 4,000 tonnes of K60 rolled steel for making large-diameter pipes (LDP) for that project.

One key part of the discussions involved questions about developing non-corrosive types of steel for LDP. The sides agreed to work closely together to enhance the working properties of existing types of steel and develop new ones. To this end, a group of specialists from Kolpino will visit Izhorsk Pipe Plant, which produces LDP.

ChelPipe and Severstal have been working together for many years. In 2013, they began a cross-functional project, “Creating a Delivery Process Management System”, which aims to reduce the time needed to deliver products from Severstal to ChelPipe and logistical costs. The companies have also agreed to minimise production and delivery times for rolled products from Severstal’s 5000 mill to ChelPipe and devised various measures for doing so. The results of the initiative will be announced at the next meeting of the coordination committee, which is scheduled for June 2015.
http://www.chelpipe.ru/en/press_center/company_news/4794/