Tenaris and Severstal: One year later

Twelve months after the signing of the joint venture agreement between the world’s largest pipe manufacturer and Russia’s leading steel company, the project to build a greenfield welded pipe plant in Surgut, Russia is moving full steam ahead.

A major project milestone was the removal of 300,000 cubic meters of topsoil and bringing in 700,000 cubic meters of sand in November 2019 to grade and level the construction site. With the selection of Rizzani de Eccher S.p.A. as the EPC (Engineering, Procurement and Construction) contractor, work is now moving to piling and foundation construction.

“All the activities are following the schedule that we projected at the beginning of this very challenging project,” said Andrea Previtali, Project Senior Director, Russia. “We are currently finalizing the tender for the supply of the main industrial machinery and equipment, and we are in line with the objective to start operations at the new plant in the fourth quarter 2021.”

Equally important is the continuing effort to create and train the team that will manage and operate the joint venture. Key positions are being filled with experienced employees from both companies, as well as the outside talent. Mandatory three-month on-the-job training at existing Tenaris and Severstal facilities is a critical part of the project that will ensure alignment in best practices and encourage knowledge-sharing.

The future plant represents a major strategic investment for both companies. With projected capacity of 300,000 tons, it will tap into the growing demand for welded OCTG products in Russia and the former Soviet Union.

The plant is in the heart of the West Siberian basin, which the U.S. Geological Survey classifies as the largest petroleum basin in the world. In addition to mature oilfields that have been supplying Russia and Europe with energy for many decades, the region is also home to the Bazhenov shale, which has potential reserves ten times greater than those of the Bakken Formation in North Dakota.

Read the press release for more details on the joint venture agreement.

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