Interpipe to produce pipes in partnership with Vallourec

Ukraine’s largest pipe producer Interpipe (INPIP)
announced on Apr. 18 that it will produce non-OCTG seamless pipes for the
European market together with the world’s industry leader, Vallourec. These
pipes will be produced at Interpipe’s Ukraine plants and will be conditioned
and controlled at a finishing line to be constructed at Interpipe Niko Tube.
The line will be managed by Vallourec and will start production in autumn 2018.

The pipes produced by the partners will be used for
mechanical, line pipe and process applications, and will be commercialized by
Vallourec in Europe.

Dmytro Khoroshun: We estimate that the utilization rate of Interpipe’s seamless pipe
capacity (1.14 mmt per year) is currently around 50%, and that the company can
increase production by about 570 kt per year from the current level. It remains
to be seen what actual boost in production volume will the partnership with
Vallourec bring about.