OREANDA-NEWS. Chelyabinsk Pipe Rolling Plant (ChTPZ, Chelyabinsk, Russia) (RTS: CHEP), a part of ChTPZ Group, announced today an agreement with SMS MEER company (Germany) for ?160 million in technological equipment for a pipe electric welding workshop specializing in the production of large diameter pipe.

According to the press service of ChTPZ Group, preparation work for construction of the workshop was begun this year at the plant’s production site. Under the contract, deliveries of SMS MEER equipment to ChTPZ will begin in October 2008.Total investment into construction of the workshop is estimated at USD 500 million.

SMS MEER’s delegation was headed by Mr. Eberhard Adamitzki, Vice President, and Mr. Bernd Kronenberg, the company’s Commercial Sales Manager. Chelyabinsk Pipe Rolling Plant was represented by Mr. Vitaly Sadykov, General Director of the ChTPZ Group, and the plant’s directors responsible for various sectors.

The decision to build a new workshop for the production of large diameter welded pipe (508-1420 mm diameter) with outer and inner covering which can satisfy any demand of the pipeline transportation market is in line with ChTPZ Group management’s strategies aimed at increased competitiveness and expanded market share. The new workshop is scheduled to be brought into operation in mid-2009. Production capacity of the new workshop will reach 700,000 tons per year.

The contract was signed during joint work of the Coordination Council with Magnitogorsk Metallurgical Plant (MMK). A cooperation contract with MMK until 2015 was signed earlier this year.