Severstal Acquires 20% Stake in Nizhne-Volzhsky Trubny Zavod
Russian steel giant PJSC Severstal has received permission from the Federal Antimonopoly Service to acquire a 20% stake in LLC Production Association
Russian steel giant PJSC Severstal has received permission from the Federal Antimonopoly Service to acquire a 20% stake in LLC Production Association Nizhne-Volzhsky Trubny Zavod, a large pipe enterprise located in Volzhsky in the south of Russia and occupying 60% of the construction pipe market in the Southern Federal District. The deal is scheduled for completion within the next month. The amount of the deal was not disclosed.
Since April 2020, Nizhne-Volzhsky Trubny Zavod has united the capacities of three producers of small and medium-sized pipes in the Southern Federal District of Russia: TZ Profile-Akras, PK DIA and VTPZ. Now the partner's production site includes 17 electric pipe mills with a total capacity of more than 600 thousand tons of products per year. Steel pipes of NVTZ are suitable for water and gas supply, construction of pre-fabricated buildings and greenhouses, arrangement of playgrounds, park areas and other urban infrastructure, furniture, and other areas of application.
The solution strengthens Severstal's position in the domestic small and medium-sized pipe market, as well as in the CIS countries. Previously, the key markets of the company were considered to be the Center and North-West of Russia. The acquisition of a stake in NVTZ will ensure the company's presence in the Southern Federal District, as well as in the Central Asian market with hot and cold pipes of small and medium diameter, which means a significant expansion of the geography of supplies. NVTZ already supplies products to the CIS countries - such as Kazakhstan, Azerbaijan, Kyrgyzstan, Uzbekistan, Armenia.https://upload.wikimedia.org/wikipedia/commons/1/10/Volzhsky_Trubny_Zavod_002.jpeg