Severstal pipe plant completes more upgrades for South Stream project
ST. PETERSBURG. March 18 (Interfax) - Izhora Pipe Plant (ITZ), a division of Russian steelmaker Severstal , has completed the installation of a finishing press for correction of pipe billets, Severstal said in a statement.
The cost of the equipment and installation was about 260 million rubles. The new equipment, supplied by Germany's SMS Meer, will enable the plant to manufacture pipes with thick walls for the offshore section of the South Stream gas pipeline.
Severstal is investing a total of about 1.3 billion rubles in the development of large-diameter pipe production at ITZ. The money will be spent on about ten projects.
The company's press service told Interfax that the modernization is being carried out primarily for the South Stream project. Key projects in addition to the finishing press include the installation of a second expander for correcting the oval of large-diameter pipes, and the installation of equipment for correcting pipe ends.
The new equipment is expected to increase the plant's production capacity and enable it to improve technology for manufacturing large-diameter thick-walled pipes.
ITZ, located in the St. Petersburg suburb of Kolpino, manufactures pipes for the oil and gas sector.