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Severstal has acquired 20pc of Nizhny-Volzhsky Pipe Production Association (NVTZ), a large pipe producer in Volzhsky, Russia. NVTZ has a 60pc market share in South Russia’s construction pipe market. The deal is expected to close by the end of May.


NVTZ combined the capabilities of small- and medium-diameter pipe makers TK Profile-Akras, PC DIA, and VTPZ in Southern Russia in April 2020. The three companies have a total annual production capacity of 600,000mt including 17 pipe-electric welding mills. 


Alexander Shevelev, chief executive officer of Severstal, said the partnership complements the investment program at its Cherepovets Steel Mill’s rolling mill given the focus on higher-margin, higher-quality rolled steel goods. With the Severstal partnership NVTZ will be able to expand its offering of pipes at more competitive prices and better weather variations in market conditions. 


Severstal’s key markets are in Central and North-West Russia and the acquisition allows it to enter South Russia. It also bolsters Severstal’s position in the export markets for pipes through the CIS region. NVTZ delivers pipe products to Kazakhstan, Azerbaijan, Kyrgyzstan, Uzbekistan, and Armenia.

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