The State Wants Pipe Assets Back From Interpipe

The Cabinet of Ministers revoked its previous regulation restructuring the Nikopol Pivdennotrubny plant. This came as a sweetener to the plant’s announced privatization to be completed by November 30, as the plant may now gain its pipe assets back.

Concorde Capital:Nikopol Pivdennotrubny plant was a flagship pipe producer in the FSU before economic depression in the early 1990s. Restructuring was initiated in June 1999 and resulted in severe asset stripping of the plant. Some of the most valuable assets passed into the possession of Interpipe and related companies. New entities, Nikopol Plant of Seamless Pipes (NIKO Tube) and Nikopol Pipe company now are to be returned to the government. As number of other investors, including foreign ones, participated in restructuring of Nikopol Pivdennotrubny the state?s decision to cancel the restructuring is likely to be bogged down in numerous legal proceedings and employee protests inspired by current owners.  WATCH — this move could push Interpipe to dispose of its pipe assets to Russian pipe holdings.