Interfax reported that the ChTPZ Group Chelyabinsk Tube Rolling Plant and Pervouralsk New Pipe Plant will receive state guarantees worth RUB 10 billion for RUB 20 billion in five year loans from Gazprombank.

Each company will receive guarantees for RUB 5 billion. Their boards of directors approved the guarantee agreements with the Russian Finance Ministry on November 2nd.

State guarantees of up to RUB 5 billion were approved for the Chelyabinsk pipe mill in September. The mill was entered on a list of backbone enterprises in December 2008. The company intends to borrow RUB 5 billion for general operating purposes and RUB 5 billion for its investment project to build a large-diameter tube welding shop.

The new welding shop will be capable of producing 600,000 tonnes of pipes and should be commissioned in 2010. Overall project costs are EUR 500 million.

(Sourced from Interfax)