Russian steel pipe producer TMK Group has acquired an 86.5pc stake in ChelPipe, a smaller producer of the same products.
According to a release by TMK, the move is in line with its long-term strategy to expand production and sales while diversifying its market offerings. The company will harness ChelPipe’s modern plants and pre-existing sales channels for this purpose.
Dmitry Pumpyanskiy, TMK’s chairman, believes that with the new acquisition, TMK can now fully meet the domestic demand for special types of steel pipes in Russia, including OCTG.
ChelPipe has an annual production 300,000mt of steel pipe products and holds a 13pc share in the domestic market. TMK, on the other hand, is the largest pipe manufacturer in the world with 3.8mn mt of pipes shipped in 2019.