OREANDA-NEWS. United Metallurgical Company (CJSC OMK, Moscow) has bought a 99.34% stake in the Blagoveshchensk Valve Plant (OJSC BVP).

BVP, located in Bashkortostan, is the largest pipe fittings producer in Russia. The acquisition of this plant will enable OMK to enter a new market segment, widen its product range and offer packaged supplies for oil and gas companies. The purchase will also enhance the company’s market positions.

BVP produces industrial pipe fittings from carbon, low alloy and stainless steels, with a nominal bore diameter from 25 to 700 mm and working pressure from 1.6 to 25 MPa. Pipe fittings are used in the gas and oil production and oil refining industries, oil and gas transportation and the chemical, energy and construction industries in Russia and the CIS, as well as in the public utilities sector. The company’s key buyers are Gazprom, Rosneft, Lukoil, Bashneft, Surgutneftegas, AK Transneft and other market leaders. Its products are certified and have licenses for use issued by the Russian Federal Service for Environmental, Technological and Nuclear Supervision. The ISO 9001-2008 (MS ISO 9001:2008) quality management system is in use at the plant. In 2012, the company successfully passed an audit performed by the American Petroleum Institute, which was aimed at assessing the compliance of the plant’s quality management system with ANSI/API Q1, ISO/TS 29001 and API 6D specifications.

A re-equipment program and projects aimed at widening BVP’s product range are being implemented at the enterprise. Since 2004, investments have exceeded 1.7 bln rubles. BVP is a member of the Research and Production Association of Fitting Producers and has specialized in steel pipe fitting production since 1949. The company was founded in 1756 and now has over 2,300 employees.

BVP is an integrated facility that encompasses all processes, from the production and assembly of blanks to tests and quality control of finished products. The plant’s basic infrastructure comprises casting, forge and pressing, welding, heat treating, processing and machine assembly works. BVP has an engineering center designed to accelerate the implementation of engineering solutions, plan technology processes and improve product quality.

OMK President Vladimir Markin commented on the deal: “Thanks to the integration of the Blagoveshchensk Valve Plant into OMK, the company will become a highly integrated manufacturer of products for oil and gas transportation, including pipes and pipeline fittings. This purchase will enable us to considerably enhance our product range and enter a new pipe fitting segment of the market. This will allow us to meet the demands of our key customers – oil and gas companies – to the fullest.’”