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. Last Updated: 07/27/2016

Germans Will Reequip Chelyabinsk Pipe Plant

The German metallurgy firm Mannesmann AG signed a $46 million contract to replace 60-year old equipment which Mannesmann itself sold to the Soviet Union in 1932.


Vladimir Kuzmin, imports specialist with Truboimpex, a private Russian import-export company that brokered the deal, said Monday that Mannesmann wilt begin delivering rolling mill equipment for the making of wide seamless pipes to the Chelyabinsk Pipe Factory.


He said that the deal would be a step-by-step process but that most of the equipment would be shipped after 1995 when the Chelyabinsk plant will have constructed a new site.


The Chelyabinsk Pipe Factory specializes in pipes for the oil industry and domestic utilities such as water and gas.


Kuzmin said that Truboimpex had signed complimentary deals with both Mannesmann and the Chelyabinsk Pipe Factory.


He said that Truboimpex would gradually pay for the new plant over a period of years.


He said that it will pay Mannesmann for the equipment and will then be repaid by the Chelyabinsk plant either in hard currency or in pipes which Truboimpex already exports.


An official with Mannesmann in Moscow, who declined to give his name, said that the new equipment will replace mills supplied to the Soviet Union in 1932.


The mills were originally shipped to Zhdanov in the Ukraine then moved to Chelyabinsk during World War II.


The Mannesmann official said that the new plant would be one of the four or five largest rolling mills in the world.


He said that in August Mannesmann struck an equipment supplies deal with another big Russian tube producer in the Siberian town of Pervouralsk.