OREANDA-NEWS. July 23, 2008. Severstal products certified for compliance with DNV and Nord Stream requirements.

Zug, Switzerland – July 23, 2008 – Izhora Pipe Mill and CherMK’s LPTs-3 plant, both part of Severstal Russian Steel, have received official notice of being included in the short-list of potential suppliers of pipe products for the Nord Stream Project, having received certification for compliance with the DNV-OS-F101 standard.

In May 2008, Izhora Pipe Mill and LPTs-3 both underwent the certification needed for participation in the tender for construction of the Nord Stream’s second phase. Tests involved checking of start-to-finish pipe production technology, including strip production. The most complex pipe schedule, with a maximum wall thickness of 34.6 mm, pipe diameter 48’’ (1,220 mm), was certified compliant. Such pipes (about 350,000 tonness) will be laid in the Russian section of the gas pipeline, stretching from Vyborg, Russia. As the testing of these pipes proved to be successful, certification also extends to pipes with a smaller wall thickness (30.9 mm and 26.8 mm) also envisaged by the Project.

In the course of testing, both participants produced a batch of 20 semi-finished plates and pipes to be certified. LPTs-3 and ITZ demonstrated consistency of technology and reproducibility of properties in the production of each plate and, accordingly, each pipe.

Anatoly Kruchinin, CEO of Severstal Russian Steel division and CherMK, said: “This is a result of the well-balanced operations at our plate rolling (LPTs-3) and pipe production (IPM) facilities. Severstal, unlike many of its peers, produces large-diameter pipe using its own rolled metal products and is fully provided with all necessary feedstock. Unified quality management standards, a short order processing route, localisation of plate rolling and pipe production on a single site all minimize production risks, enable us to develop new technologies faster than our competitors and make us a more reliable and flexible supplier.”

Oleg Urnev, CEO of Izhora Pipe Mill, said: “This certification opens up bright prospects. Izhora products have been found to be in compliance with the stringent requirements imposed on pipes to be laid in extreme Baltic seabed environments. Moreover, Izhora is located in close proximity to the gas pipeline area – the Gulf of Finland water area – which offers additional advantages, reducing transportation costs for our potential client.”